'Action is needed now,' says British Chamber of Commerce as deeper and longer recession looms

Business leaders have challenged the new Prime Minister to urgently tackle the economic crisis as new estimates suggest the looming recession will last longer than expected.

'Action must be taken now,' the British Chamber of Commerce has warned (BCC) as it further lowered its forecast for the year ahead amid a "deteriorating economic outlook".

Shopping streets have been hit by a slowdown in the post-Covid recovery, cost of living pressures having discouraged consumers, figures show.

Total UK footfall fell 12.4% in August compared to the same month three years ago years, according to the British Retail Consortium (BRC).

Exceptionally high costs are already hitting consumers and businesses amid the ram pants inflation.

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Alex Veitch, Director of policy at the BCC, said these pressures "are likely to only increase as we approach Christmas, with the UK economy already seen as in recession".

He added: "S' Tackling these pressures must be high on the list of priorities for the new Prime Minister when he takes office next week.

"We have revised our projected inflation rate upwards by four percentage points percentage to a new high of 14%. Inflation is rampant, and it not only impacts the cost of doing business, but also the ability of some businesses to keep their doors open. We must act now.

The BCC has cut its forecast for UK GDP growth for 2022 to 3.3% (from 3.5% in the second quarter) and now forecasts a recession for the UK economy this year, with negative economic growth for three consecutive quarters of Q2, Q3 and Q4 2022.

"Time is running out. Government must step up and do what is necessary to protect businesses, livelihoods and jobs Mortgage rates are rising, but rental prices will continue to rise despite affordability pressures on renters, a real estate and leasing agent predicted.

Hamptons said that ' it forecast prices to be unchanged in the fourth quarter of 2023 compared to the same period in 2022, with a change of 0% across Britain.

Sales expected to be affected next year , with a decline coming from mortgage buyers, particularly prime mo-buyers, as forecast.

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