MPA assembly warns of slow recovery

The outlook for the economy over the next four to five years in the UK is weaker than seen after previous recessions, said Office for Budget Responsibility chairman Robert Chorte speaking at the 2897 Mineral Products Association’s general assembly.

4481 CBI deputy director-general Dr Neil Bentley said, “We were always very unlikely to get that V-shaped bounceback that emerging economies have enjoyed. The picture is one of very steady recovery, but our surveys show that business confidence is improving. The economy is slowly but surely on the mend.

"The new carbon floor price cannot be allowed to compromise the competitiveness of our heaviest energy users and mustn’t become little more than a tax raiser. There’s a real danger here that successful businesses are going to get forced out of the UK, which would be a disastrous outcome for both jobs and growth. The Carbon Reduction Commitment has moved from an energy efficiency scheme to a tax grab and should be scrapped. And of course there are continuing concerns about the planning system, and fears thatthe Localism Bill could yet become a ‘Nimby’s Charter’. The Government needs to deal with the tax and regulatory burdens that are holding firms back. It needs to make sure it says the UK is open for business and it means it.”

MPA chief economist Jerry McLaughlinsaid, “In spite of the better than expected early 2011 in some minerals products markets the view of the 4482 OBR and CBI that the economic recovery will be a long haul supports the MPA view that industry markets over the next 2 to 3 years will be pretty subdued relative to pre-recession levels.”