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Falling GDP makes Autumn Statement more difficult, ICAEW says

Author: ICAEW

Published: 11 Nov 2022

Responding to the latest UK GDP figures, released by the Office for National Statistics today (Friday 11 November 2022), Suren Thiru, Economics Director for ICAEW, said:

“Fears of a recession are turning into reality.

“This fall in output is the start of a punishing period as higher inflation, energy bills and interest rates clobber incomes, pushing us into a technical recession from the end of this year.

“A contracting economy makes the Autumn Statement much more challenging, because it means less tax revenue for the government, while aggressive spending cuts and tax rises would drive a longer and more damaging downturn.”

On the fall in business investment, Suren added:

“The decline in business investment highlights the chilling effect that soaring cost pressures and political and economic uncertainty are having on company spending on new projects. 

“Weak business investment undermines the UK’s ability to tackle longstanding issues like regional inequalities and low productivity.”


Notes to editors:

Contact: ICAEW media office, media.office@icaew.com, tom.mackintosh@icaew.com, or 07866 853 841