Supply chain crisis is slowing UK economic growth
Sunday, September 12, 2021
The British Chambers of Commerce (BCC) warned that there was also a "real danger" that the government's healthcare and welfare levy could further strangle recovery in the post-pandemic era.
It comes after the Government announced on Tuesday a 1.25 per cent increase in national insurance tax on Tuesday to raise £12billion to help fund the NHS and the NHS.
The BCC has cut its third-quarter growth guidance to 2.8% from 3.5% ahead after it said supply chain disruption and recruitment woes would compensate for the boost from the total restraints on Coronavirus in July.
Growth in this year's second quarter, which was 4.8 percent, will continue to weaken between October and December to 1.6 percent, it said.
Official figures on Friday propose a further slowdown in economic growth as July goes on, with most economists expecting growth of 0.5 per cent, up from 1 per cent in June.
The supply and truck driver woes have left supermarket shelves increasingly empty over the last couple of weeks, hitting industries ranging from hospitality to construction.
The United Kingdom will continue to see its strongest growth since official records began in 1949, with gross domestic product (GDP) growing 7.1% in 2021, followed by 5.6 ° C in 2022, according to the BCC.