There were positive signs in the economic data over the last month, and the coming period will be particularly important as the government seeks to embed its vision for the economy. Similarly, charities need to be clear about their priorities and how their work fits into the overall picture, for example working alongside other relevant organisations. It is time for charities to build momentum, taking action in a focused manner to maximise their impact.
The Office for National Statistics (ONS) estimated that the monthly gross domestic product (GDP) returned to growth in August 2024, expanding by 0.2%. The most recent economic forecast by the Organisation for Economic Co-operation and Development (OECD) also upgraded the UK’s growth prospects, with GDP predicted to grow by 1.1% in 2024 compared with 0.4% earlier in the year.
The Consumer Price Index (CPI) rose by 1.7% in the 12 months to September 2024, down from 2.2% last month and below the Bank of England’s 2% target for the first time since April 2021. The annual growth in regular pay from the ONS was 4.9% in the three months to August 2024, which is at its lowest point for over two years. Indications of a cooling job market remain with vacancies continuing to fall.
Net zero
PwC’s Net Zero Economy Index 2024 tracks the progress made in reducing energy-related CO2 emissions and decarbonising economies. With a global decarbonisation rate of just 1.02% in 2023, this has stalled to its lowest level in over a decade, and the world will need to decarbonise at a rate 20 times faster if we are to limit global warming to 1.5°C above pre-industrial levels. Even limiting warming to 2°C – the lowest end of the Paris Agreement’s ambition – requires a step-change in progress with an annual decarbonisation rate of 6.9%.
While incremental progress is being made, current trends suggest an ever-widening gap between ambition and action. Immediate and sustained efforts are crucial to drive change for a sustainable and resilient future. The combination of public sector policy and private sector innovation is also critical for this.
Charities – particularly those with an aligned charitable purpose – will have their part to play. With other looming priorities, environmental considerations appear to be having less of a focus in the sector, but there continues to be an imperative for this to be an important part of the agenda.
Daniel Chan is partner and charities leader at PwC
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