As the UK grapples with the economic impact of Brexit, Chancellor Jeremy Hunt will announce new measures aimed at boosting business investment in his upcoming autumn statement. The announcement, due on Wednesday, comes after Bank of England Deputy Governor Dave Ramsden on Tuesday linked Brexit to poor UK business investment growth compared to other countries.

Ramsden notes that since the 2016 referendum, UK business investment has only grown by around 6% in real terms, in stark contrast to growth in the United States of more than 25%. He attributed the delay to political and economic uncertainty impacting the UK’s productive capacity and fiscal policy certainty. These factors appear to be slowing the recovery of UK business investment following the global financial crisis, which was disrupted by uncertainty regarding Brexit and changes in government policy.

In his speech at the CBI conference on Monday, Chancellor Hunt outlined his plans to increase UK business investment through new measures aimed at economic growth. Details of these steps are expected to be one of the focuses of his fall statement.

Elsewhere, Governor Andrew Bailey discussed lawmakers’ expectations regarding falling inflation and a potential cut in interest rates from the current level of 5.25%. However, he warned that the risk of persistent inflation, which poses a challenge to achieving the inflation target, should not be ignored.

Next fall’s statement will focus on strategies to drive business investment growth. This is an important step for the UK in its efforts to build secure relations in international trade and economics after leaving the EU. The Government’s attention to these issues highlights the need for stability and growth at a time marked by major economic transition.

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