Q2 Growth Masks Underlying Business Pain

14th August 2025

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 data for both Q2 and the month of June are welcome – but the numbers mask the underlying pain being felt by businesses across the UK. 

“Without thriving firms the economy will continue to struggle. We saw better than expected growth at the start of the year, largely because of stockpiling ahead of US tariffs. However, tax burdens at home, alongside uncertain global trading conditions, created a very challenging environment for the UK’s SMEs in Q2. The impact of April’s national insurance hike is now clear, with our latest survey showing investment and recruitment hit.  

“Long-term strategic plans from Government on industry, infrastructure and trade have been widely welcomed by businesses. But with the focus now on delivery, persistent cost pressures mean firms are left with one hand tied behind their back.  

“There must be no more business taxes in the Autumn budget. Our recently published Blueprint for Growth document offers Government practical ways forward, to help  businesses invest, recruit and trade.”