14 July 2020
This morning’s news that the UK’s economy is returning to growth a lot slower than expected is concerning, reflecting underlying structural issues that will hamper recovery. We are far off from recovering from record declines in activity and it is extremely unlikely that we will experience the much-coveted V-shape recovery despite the near-term support provided by the Government.
The Government must now also focus on delivering a long-term economic strategy to help put the UK back on a sustainable, sound footing and tackle the long-term challenges it faces which this crisis has only exacerbated (e.g. low productivity, high dependency on low-skill service sector jobs, regional imbalance, and weak social mobility). To address this, the Government must deliver support in key areas including giving businesses and investors certainty on the tax and regulatory frameworks over the next two years to support inward investments, directing skills training towards jobs and sectors with real-wage growth potential, and designing appropriate measures to support SMEs and new startups.
Dr. Ian Selby
Vice President – Global Research and Development, Management Accounting
The Chartered Institute of Management Accountants, part of the Association of International Certified Professional Accountants