- The British Chambers of Commerce (BCC) forecasts that UK unemployment will increase by over 400,000, reaching two million (5.5 per cent) by the end of Labour's first term.
- The report highlights a significant rise in youth unemployment, predicting 167,000 more 16-24 year olds will be out of work by 2028, pushing the rate to 17.8 per cent.
- The BCC also anticipates weak business investment, higher inflation reaching 3.8 per cent by the end of the year due to energy costs, and falling exports, alongside a reduced GDP growth forecast of 0.9 per cent.
- Vicky Pryce of the BCC cited a fragile global environment, geopolitical instability in the Middle East, and rising energy and shipping costs as key factors impacting economic growth and inflation.
- The forecast follows warnings from former minister Alan Milburn about a “lost generation” of young people, with the shadow business secretary criticising government “taxes on jobs” for exacerbating the situation.
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