Positive Q1 Growth But Challenges Ahead
15th May 2025
Stuart Morrison, Research Manager at the British Chambers of Commerce, responds to the latest GDP data, published by the ONS this morning
Responding to the latest GDP data, published by the ONS this morning, Stuart Morrison, Research Manager at the British Chambers of Commerce said:
“Better than expected Q1 growth of 0.7%, is evidence that the UK economy held up well at the start of the year, despite mounting headwinds. Strong performances in the services and production sectors are particularly welcome.
“However, context is crucial, as we’ve yet to see data showing the impact of the national insurance hike or the global tariff war.
“Our research shows 82% of firms saying the NI rise will impact their business - hitting investment, recruitment and prices. Firms are left asking, when are they going to get a break?
“Businesses want urgent action from policymakers to help them invest, trade and recruit. A tax roadmap, covering national insurance and business rates, would give firms the certainty they need to plan ahead. Signing off more infrastructure projects in all parts of the UK will help support SMEs.
“In challenging times for our exporters, next week’s UK-EU summit is a chance for the Government to deliver on its promise to improve the trading relationship.”
