Lending to businesses is set to fall by 1.8% next year and a further 1% the year after, before a recovery in the following year, a report by EY Item Club forecasts.
Mortgage lending is forecast to continue to increase, but at a slower pace than previously expected. Growth is expected to average below 1% a year over the next three years, compared with 3% growth in 2014 and 2015.
There is a strong sense of wait and see as businesses and consumers look for details on what Brexit looks like in reality, EY’s UK financial services managing partner, Omar Ali, said.
