Brexit & EconomyPoliticsITEM club in dire economic warning

ITEM club in dire economic warning

Household debt crippling economy says E&Y think tank

The Ernst
& Young ITEM Club
has warned that the economy is ‘skating on thin ice’
because of excessive household debt.

It said while Gordon
Brown
would be leaving
No.11
on a high, the strong economic performance is built on shaky foundations.

The ITEM club said the current benign macroeconomic environment had made both
individuals and firms overly relaxed about risk, inflating asset values and
transactions and boosting borrowing and spending.

‘Many people are following the chancellor’s lead and are borrowing to finance
consumption,’ said Peter Spencer, the ITEM Club’s chief economic adviser.

The ITEM Club predicted the economy will expand by 2.9%t this year, in line
with the chancellor’s 2.75% to 3.25% forecast.

Further reading:

ITEM Club warns of disappointment for chancellor

No surprise as rates left unchanged

Related Articles

5 key takeaways from Theresa May’s Florence speech

Brexit 5 key takeaways from Theresa May’s Florence speech

3m Alia Shoaib, Reporter
UK at risk of Brexit talent brain-drain

People Practice UK at risk of Brexit talent brain-drain

3m Alia Shoaib, Reporter
Brexit essentials: this week's round-up

Politics Brexit essentials: this week's round-up

4m Alia Shoaib, Reporter
Government publishes post-Brexit customs arrangements policy paper

Politics Government publishes post-Brexit customs arrangements policy paper

4m Alia Shoaib, Reporter
Italy grants first successful non-dom status application to former UK non-dom

Personal Tax Italy grants first successful non-dom status application to former UK non-dom

4m Emma Smith, Managing Editor
Increased government spending partly offset by high tax revenue

Governance Increased government spending partly offset by high tax revenue

5m Alia Shoaib, Reporter
Less than a third of UK businesses have made formal Brexit plans

Politics Less than a third of UK businesses have made formal Brexit plans

5m Alia Shoaib, Reporter
Nicky Morgan elected Chair of the Treasury Committee

Politics Nicky Morgan elected Chair of the Treasury Committee

5m Alia Shoaib, Reporter