UK economy unexpectedly back in negative territory in blow to the chancellor ahead of spring statement

The Institute of Chartered Accountants in England and Wales’ economics director Suren Thiru has described the drop in economic output as “unnerving”.

He said:

These figures confirm an unnerving drop in economic output during January’s financial market turbulence, as a notably poor month for construction and manufacturers severely hindered overall activity.

The UK’s economic performance may have been similarly downbeat in February, with any boost from consumer spending amid strong wage growth and lower interest rates weakened by the brake on business activity from this torrent of global uncertainty.

Securing good jobs for the future, along with collective bargaining through trade unions is by far the best route to growth. Workers spend their wages in their local economies - they don’t send their money to the Cayman Islands.

So if we are serious about improving the economy, the government needs to move quicker and more decisively on improving jobs, pay and conditions - we can’t afford to wait for the investment, employment laws and joined up industrial strategy that the country needs. We won’t get growth by sitting on our hands.