The latest GDP data has been released today - showing the UK continues to be stuck in a growth rut - 0.0% in the three months to November 2024, 0.1% in the month itself.
Stuart Morrison, research manager at the British Chambers of Commerce, said: “With no growth in the three months to November 2024, and a very limited uptick for the month itself, it's clear that the UK economy continues to be stuck in a worrying rut.
“Our latest forecast expects GDP to pick up slightly in 2025 and 2026, but this is driven largely by increased government spending. Right now, firms are struggling to deal with a raft of extra costs following the Budget. Investment levels are likely to remain low for the foreseeable future, as businesses try to balance their books.
“We urgently need to see government action to ease cost-pressures and spark investment. Ministers should focus on business rates reform, infrastructure projects and promoting trade to unlock economic growth.”
The news comes in a week when we also learned that inflation had edged marginally down, by 0.1%.
Stuart added: “The slight dip in the inflation rate is welcome but it’s not a game-changer. Underlying price pressures within the economy are clear following the Budget. The path ahead on interest rates this year is likely to remain slow and cautious.
“As our research clearly shows, firms are having to make difficult decisions to manage the upcoming rises in national insurance contributions and the minimum wage. Our latest survey shows most firms expect to raise their prices in the next three months, while business confidence has dipped to 2022 levels. Labour cost pressures have grown significantly and are particularly acute in the hospitality sector.
“We need quick government action to ease the cost pressures companies are facing and create new opportunities for investment. Ministers should focus on accelerating business rates reform, giving infrastructure projects the green light and boosting exports.”
Latest News