CBI responds to latest GDP figures

Ben Jones, CBI Lead Economist, said:

“The slight rebound in growth at the start of the year wasn’t altogether surprising, given the sharp drop in December. But activity is likely to be subdued in the near-term, given the headwinds of high inflation, still-high energy prices and rising interest rates. However, sentiment is improving, and business leaders are hopeful of a more stable operating environment later this year.

“The government should use the forthcoming budget to overcome the prevailing economic headwinds by tackling the barriers holding firms back. This includes solving labour shortages by reforming childcare and helping bring more working parents back into the workforce, as well as finding a replacement to the super deduction ahead of the planned six-point increase in corporation tax.”