Growth Slows As Businesses Face Mounting Costs

Responding to the latest GDP data published by the Office for National Statistics today, David Bharier, Head of Research at the British Chambers of Commerce said:

"Today's preliminary GDP data for Q3 at 0.1% suggests economic growth has lost some momentum in the second half of 2024.

"Our latest research has shown business confidence falling back amid a spike in anxiety over tax and employment policy. Meanwhile geopolitical uncertainty continues to make international trading conditions challenging.

"Last month's Budget gave UK businesses some welcome indication of the Government's long-term framework to boost growth. However, our early feedback from businesses suggest many will not be able to stomach the raft of new costs.

"SMEs now face making tough decisions to deal with the increase in National Insurance Contributions, the rise in the National Living Wage and the impact of the Employment Rights Bill.

"Sustained economic growth can only come through business. That's why it's crucial that we see decisive and inclusive action at pace from the Government to unlock investment. A lot is riding on the detail of the industrial and trade strategies in the months ahead."