8:17 AM 11th September 2020
UK GDP Grew By 6.6% In July - Business Response
Bushiness organisations have responded to GDP figures for July 2020 published today by the ONS:
Rain Newton-Smith, CBI Chief Economist
“As more businesses were able to open their doors, the economy grew further in July. But economic growth lost some steam on the previous month, illustrating the continued uncertainty over the shape of an economic recovery ahead.
“The prospect of a second wave is restraining consumer and business confidence, and firms continue to face cash flow difficulties. With government support schemes coming to an end and renewed uncertainty over Brexit, clearly the road back to ‘normal’ is going to be a rocky one.
“A successor to the Job Retention Scheme and a deal with the EU are essential foundations for a near-term economic recovery. Learning the lessons from local lockdowns will also help manage any second wave of Covid, and get growth onto a more sustainable footing.”
BCC responds to ONS GDP figures for July
BCC Head of Economics Suren Thiru
“The latest data confirms that UK economic activity continued to pick-up in July as lockdown restrictions eased further.
“The UK economy is currently in a period of temporary calm, with activity buoyed by the government’s emergency support measures and the unwinding of pent-up customer demand as more parts of the economy reopened.
“However, with many firms continuing to face an unprecedented cash crisis and unemployment likely to surge as the support schemes wind down, there remains little prospect of a sustained resurgence unless substantial action is taken.
“To protect jobs and livelihoods, the government should consider extending and adapting the Coronavirus Business Interruption Loan Scheme to ensure businesses are supported sustainably over a longer period, as well as introducing a more significant package of support for firms placed under local restrictions.”
TUC General Secretary Frances O’Grady
"The big danger now is that the recovery loses momentum because of a surge in unemployment when the job retention scheme ends. The government must not throw away the good work of the scheme by ending it too abruptly. We need a successor scheme for businesses with a viable future that need support for longer."