The overall economic environment in the UK is relatively stable, ahead of the autumn budget at the end of this month. The office for National Statistics (ONS) estimated that the monthly gross domestic product (GDP) is estimated to have shown no growth in July 2024, after also showing no change in June 2024.
Yet many charities are not feeling this stability. The sentiment from discussions with a number of charity trustees and leaders continues to be one of the variables and unknowns.
Having been elected on a commitment of boosting economic stability and growth, the new government has assessed the state of public spending and reported a context of challenging fiscal conditions. Charities will be on the lookout for how initiatives for growth, alongside plans to balance the books, will impact them and the communities in which they work.
The Consumer Price Index (CPI) rose by 2.2% in the 12 months to August 2024, which is unchanged from the previous month and remains slightly above the Bank of England’s target of 2%.
The annual growth in regular pay from the ONS was 5.1% in the three months to July 2024. The trend of an increase in the employment rate, while again below estimates of a year ago, has continued from May to July 2024. The estimated number of vacancies in the UK also decreased from June to August 2024 compared to the three months prior.
Accelerating devolution
This year’s Demos-PwC Good Growth for Cities report explores the priorities of communities across the UK, and how local leaders can play a greater role in delivering inclusive economic growth in their areas. Accelerating devolution and providing the right framework for local accountability will be key to driving inclusive growth across the UK, where outcomes are improved when action is taken at a local level.
There is disparity though between and within UK cities, and the scale and diversity of the current economic challenges around housing, education and jobs has grown significantly. This calls for targeted, place-based development strategies, and charities should seek to play their part to respond to these challenges.
A successful place-based approach to driving good growth will require a level of collaboration between central and local government, business, charities and other service providers that has historically been rarely seen. It will also need clear outcomes that harness the digital revolution, drive increased productivity, prioritise skills development and do what is right for nature and our environment.
Daniel Chan is partner and charities leader at PwC
Related articles
