IoD press release  Revisions show UK economy picking up ahead of Middle East conflict

“Revisions to GDP show that, ahead of the conflict in the Middle East, the economy was picking up from a dip in activity last summer. However, as the conflict drags on, reports continue to grow of escalating energy costs, paused decision making and concerns over potential shortages of critical inputs. The UK’s tight financing conditions, high initial starting point for inflation, uncompetitive energy costs and low fiscal space, make us uniquely vulnerable to the situation.

“It is welcome to see the Government pushing forward with expanded and backdated support to energy intensive industries through the British Industrial Competitiveness Scheme. As the Government considers what broader support for business might look like should the crisis persist, it makes sense to consider the plight of those in wholesale, retail, accommodation, food and construction who are all flagging their exposure through complex global supply chains, critical inputs and energy costs. More broadly, a re-think of the UK’s energy market structure is needed, balancing renewable energy delivery, incentives to electrify and the role of UK fossil fuels.”