IoD: Government needs to invest to cement stronger economic growth

Commenting on ONS data that showed GDP rising by 0.6% in Quarter 2 2024, following growth of 0.7% in Quarter 1, Anna Leach, Chief Economist at the Institute of Directors, said:

“It’s good to see the UK cement the first half of the year with a further quarter of strong economic growth. Sadly though, this pace of growth is not set to last: business surveys point to modest momentum through the summer months, no doubt affected by still high interest rates.

“The challenge for government is to firmly lift the UK’s growth performance out of the doldrums. There’re no quick fixes here: we’ll need the government to follow-through on its manifesto commitments to set and stick with long-term infrastructure investment plans. Recent decisions to cancel public sector investments (in transport and AI in particular) sit uneasily alongside promises to embed stable and long-term decision-making. Re-visiting the fiscal debt rule to unlock government-financed investment warrants serious consideration.”