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UK Economy Stalls as Policy Vacuum Deepens, Warns Inman

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UK Economy Stalls as Policy Vacuum Deepens, Warns Inman

2 days ago7 min read

The UK economy’s unexpected contraction has transformed simmering City anxieties into open recession fears, exposing a critical policy vacuum at the heart of government. As GDP figures cast a pall over Westminster, the response has been defined by a perilous procrastination—a failure to pivot from campaign caution to the decisive action the moment demands.This paralysis is under intense scrutiny on global trading floors, where investors seek a coherent growth strategy but find only a patchwork of reactive measures. The latest example, a new business rates regime set to hammer the already struggling hospitality sector, feels like a technical tweak made while the economic engine sputters.Historical parallels warn that governments which hesitate in the face of early downturn signals often face far costlier interventions later, after damage is entrenched. With the Bank of England trapped between stubborn inflation and a stalling economy, the Chancellor’s fiscal levers are few.Leading economic institutes argue the window for a soft landing is narrowing, urging a strategic package focused on infrastructure and green technology to boost productivity. The cost of continued delay is stark: a deeper erosion of business investment, a potential unemployment spike by mid-2024, and further pressure on sterling.On the global stage, the UK cannot afford passivity; the flashing data demands a bold, forward-looking response that matches the scale of the challenge. The markets are watching, and their patience, like the economic indicators, is not infinite.

#lead focus news

#UK economy

#Labour Party

#business rates

#recession

#economic policy

#pubs and hotels

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