IoD press release  Weak GDP figures set the stage for a difficult Budget

“GDP growth weakened in Q3, held back in particular by the sharp fall in vehicle production after the cyber security incident at Jaguar Land Rover. ONS figures show that the disruption alone knocked around 0.17 percentage points off September’s GDP, meaning the month would otherwise have edged into positive territory. Even so, underlying momentum remains weak. The effect from last year’s cost increases on businesses, a weakening labour market and soft growth in real wages are bearing down on consumer and business spend. Overall output per head was flat in Q3, underscoring the lack of real improvement in living standards.

“Looking ahead, a difficult Budget is expected to heap further constraints on growth. Tax rises on consumers, businesses and investors risk squeezing out demand when the economy is already weak. Growth must be the priority if the UK is to see rising living standards over this parliament. To unlock investment, businesses need a coherent long-term plan for growth, including a clear and complete business tax roadmap and a more proportionate approach to employment regulations.”