New PM will Inherit Fragile Economy

16th July 2026

Stuart Morrison, Research Manager at the British Chambers of Commerce, responds to the latest GDP data, published by the Office for National Statistics this morning

Responding to the latest GDP data, published by the Office for National Statistics this morning, Stuart Morrison, Research Manager at the British Chambers of Commerce said: 

“The latest ONS data shows a fragile economy weighed down by geopolitical tensions and domestic cost pressures. 

“With GDP growing by 0.7% in the three months to May, and only 0.1% in May itself, the new government faces the same growth challenge as its predecessor. 

“The Iran conflict is having real-world consequences for UK firms. Rising energy prices and shipping disruption are increasing costs and creating uncertainty across the economy. 

“For most businesses, recent cost rises, including the national insurance hike, are just the tip of the iceberg. BCC analysis shows government-imposed costs on a typical SME have risen by more than 70% in just 10 years. 

“The impact is clear - business confidence is low, and our latest SME survey shows investment plans at their weakest level since the pandemic. 

“From the moment Andy Burnham enters Downing Street, he must back business. That means moving quickly to cut the cost of doing business and create opportunities to boost trade, investment and productivity across the economy.”