IoD press release  Tariffs and other policy changes obfuscate the UK’s growth performance

“May’s GDP data seems again to be affected by activity shifting around government policy, making it difficult to read underlying trends. For example, there was a further decline in car manufacturer driven by US tariffs as well as model changeovers and restructuring.

“The UK’s underlying growth is tepid and beset with risk. Despite the welcome launch of a plethora of government strategies, and a Spending Review which stuck to the pre-set envelope, we’re back worrying about tax rises in the forthcoming Budget. Any further rise in the tax take from business risks damaging capital flight from the UK. Tight growth-positive messaging from government will be crucial to provide reassurance to business and to avoid a further confidence and growth hit from damaging speculation. A number of supports to growth remain in tact, including an expected downward pathway for interest rates and robust consumer balance sheets. The government should build on these and other pockets of strength by accelerating de-regulation and planning reform to help deliver the growth mission.”