Response to latest GDP stats

Alpesh Paleja, CBI Lead Economist, said:

“Omicron continued to weigh on growth at the start of the year. While the economy has recovered since, it’s clear that causes for concern are growing quickly. Conflict in Ukraine is putting considerable pressure on energy and commodity prices, which, if sustained, will push inflation even higher than expected. The need to press ahead with deploying new power generation through renewables, nuclear and increasing storage capacity, remains acute.

“Beyond the immediate challenges we face, urgent action is needed to push the UK onto a higher growth trajectory. The priority must be a relentless focus on investment-led growth, through introducing a permanent replacement for the super-deduction, and reforming the tax system to incentivise green capital spending.”