PwC UK chairman Kevin Ellis says the rest of the world is looking at the UK economy through a more positive lens. Photo: PwC
Mr Ellis Appetite for dealmaking among UK businesses is returning as expectations grow that central banks will start cutting interest rates this year, according to PwC research published to mark the start of the World Economic Forum in Davos, Switzerland.
He added that concerns about the impact of the upcoming election on investment and hiring were overblown.
Mr Ellis told The Telegraph: “I certainly don’t feel people are changing their investment forecasts from -for this. year, knowing that at some stage elections were approaching.
“There is no doubt that whoever is in Downing Street, whether on this side of the election or the other, this growth will be important for jobs, taxes, investment and the public sector, because everyone knows that after Covid we More revenue is needed to lead to tax cuts and economic growth.»
Writing in The Telegraph, Shadow Chancellor Rachel Reeves said that «the defining economic mission of the next Labor government will be to create wealth and bring economic growth back to Britain.» .< /p>
Labour is mounting a three-day offensive in Davos, led by Ms Reeves and Shadow Business Secretary Jonathan Reynolds.
During the trip, the couple scheduled dozens of meetings, including with Google, Barclays and Ericsson, as well as several energy companies.
Simon Freakley, chief executive of the consulting company AlixPartners, spoke on the sidelines of the event. , said: “There is general optimism and confidence on the business side about the Labor government. They don't scare [leaders] with too old Labour-style policies.»
Chancellor Jeremy Hunt is also expected to attend Davos along with Foreign Secretary Lord Cameron. The Business Department will be represented by Trade Secretary Lord Johnson, who will be present in place of Kemi Badenoch, who is no longer expected.
A PwC survey found business leaders were far more optimistic about the UK economy than Threadneedle forecasters. Street. British leaders were the most optimistic about economic growth this year of any G7 country except Japan.
When asked whether he thought UK economic growth forecasts for the next few years were too pessimistic, Mr Ellis said: “Forecasts are forecasts. Nobody knows what will happen next.”
However, he added: “Negativity breeds negativity. So I think a lot of it comes down to confidence and I think business has a big role to play in reskilling, job creation, wealth creation and aspiration and I think we in this country need to have confidence that we have.»
Mr Frickley said: «The problem for the UK, of course, is that you can get into a doom spiral.»
Andrew Bailey, Governor of the Bank, recently was forced to deny he is an «ultra-pessimist» after he described Britain's growth prospects as among the worst he has ever seen.
Mr Ellis noted the UK's strong services economy. This meant it was in the best position to take advantage of the artificial intelligence revolution, with the UK adopting technology much faster than other rich countries.
Despite the optimism of the PwC survey, PageGroup, one of the largest recruiters UK, on Monday announced hundreds of job cuts in response to a recent hiring slowdown.
In the last three months of 2023, the FTSE 250 firm cut 224 — almost 4% — of its salaried roles. The latest layoffs mean that PageGroup has cut 1,092 salaried jobs over the past year.
The Surrey-based company, which employs almost 8,000 people, has cut 57 back-office jobs as part of its downsizing.
>The cost-cutting decision comes after PageGroup issued a profit warning after seeing «no improvement» from a recent hiring slump.
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