An economic storm looms

Act urgently on likely recession

ECONOMIC storm clouds are gathering over Britain. Spiralling prices, industrial unrest, low growth and looming battles with the EU over trade all threaten to have a devastating impact on already hard-pressed households.

Today’s warning by the CBI of serious problems ahead makes for depressing reading. Its forecast of a stagnating economy that may all too easily tip into recession is prescient and supported by the data – which is underpinned by the global uncertainties and possible food shortages caused by war in Ukraine.

All of this makes it imperative that the Government acts urgently to head off what would amount to a crisis for countless people already teetering on the brink over meeting bills for everything from food to petrol to heating.

There are 40 days before Parliament’s summer recess, and the country expects and demands that Boris Johnson and his ministers come up with a plan to address and mitigate the challenges.

Thus far, the Government’s response has been severely wanting. It is simply not good enough for the Prime Minister and Chancellor to argue that they cannot solve every problem. The country knows that to be true, but equally knows that there is an absence of a coherent overall strategy to stave off recession and help the many who are struggling.

Turmoil within Tory ranks over Mr Johnson’s future has aggravated matters, turning the Government’s gaze inward to its own schisms when the focus should be on helping people make ends meet.

The CBI proposes practical ways of doing so, including a drive for growth and easing international trade links. The Government should act on these without delay and do everything in its power to avert a looming financial catastrophe for millions fearful that their lives will become unbearably difficult.