George Osborne Outlines Risks Facing UK Economy In 2016

Chancellor’s Speech Echo Findings From Law Firm’s Latest UK Powerhouse Report

07.01.2016

Kate Rawlings, Press Officer | 0114 274 4238

George Osborne has today outlined the challenges facing the UK economy over the next 12 months, just weeks after saying the UK was “growing fast” in his Autumn Statement.

The threats to the economy he described, mirror many of those highlighted in Irwin Mitchell’s latest UK Powerhouse report released earlier this week.

They include tensions in the Middle East, slowing growth in China, low prices for commodities such as oil and copper are all weighing on global confidence.

The report, made with Centre for Economic and Business Research (Cebr), also cites that the first interest rate rise since 2007 which is expected this year, will also cause growth to slow.

Treasury sources were reported in the media saying: "Anyone who thinks its mission accomplished with the British economy is making a grave mistake.

"Last year was the worst for global growth since the [financial] crash and this year opens with a dangerous cocktail of new threats.

"I worry about a creeping complacency in the national debate about our economy.

"A sense that the hard work at home is complete and that we're immune from the risks abroad.”

The Chancellor's alarming message comes days after the latest UK Powerhouse Tracker report was released forecasting that because of ‘stronger economic headwinds’ the UK economy will continue to grow in 2016 but lose momentum.

The report shows that the services sector, which includes retail, banking and tourism, is performing well, but that the outlook for manufacturing is less positive.

Expert Opinion
Our latest report predicts that it will be a challenging year for the UK economy in 2016 and this warning from the Chancellor backs this up.

With uncertainty over our future in the E.U, confidence in the global markets waning, subdued export markets, a likely rise in interest rates, and continued deficit reduction the Government needs to take steps to secure the future of the economy.

Our latest report highlighted that all of the cities that we analysed would grow in 2016 but at different rates. The next 12 months will be vital for many businesses and in addition to ensuring momentum isn’t lost, we believe that it is vital that the Government pushes forward with its economic wealth spreading agenda.
Niall Baker, Chairman of IM Asset Management & Partner