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  • 1 year ago
Shadow Chancellor Sir Mel Stride welcomed the UK’s 0.7% growth but warned it’s "no time to pop champagne corks." He pointed to signs of a slowdown in March and rising pressures on businesses from tax and regulatory changes. Stride said wider forecasts still predict weaker growth ahead, warning the economy faces "stress and strain" despite this short-term boost. Report by Covellm. Like us on Facebook at http://www.facebook.com/itn and follow us on Twitter at http://twitter.com/itn

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00:00Any increase in growth is of course welcome, particularly from a government that has singularly
00:05failed to deliver it. If you look at those numbers, actually the March number compared
00:10to the February number, the level of growth was under half, so there may be some tailing
00:14off but let's see, this is early days. Of course the national insurance increases, the
00:19increase in business rates that have just kicked in, the employment legislation that's
00:23coming down the line that the Treasury says will load on about 5 billion in extra costs
00:27for businesses are not impacted in those numbers in a significant way. And if you look at the
00:32overall forecast from the IMF, from the Bank of England, from the Office for Budget Responsibility,
00:37they're all downgrading growth across the year with the OBR actually halving its forecast for
00:42growth this year. So I don't think we should be popping the champagne corks on this but
00:47of course any growth as well. National insurance is going up very significantly, that is now
00:51being paid by businesses. I'm visiting companies all the time who are telling me about the stress
00:57and the strain they're under because of that, because of increases in business rates. You're
01:01seeing unemployment beginning to tick up as a consequence of that and the softening in
01:05the labour market. There are a number of different signals going on here. Growth of course is always
01:10welcome but we are far from out of the woods in terms of the overall macroeconomic picture.
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