The Chamber is encouraged by the positive Q1 growth figures, which showed a 0.7% increase in GDP. While this is certainly good news, it is important to view these numbers in proper context. As our Policy Manager Nick Hyde pointed out, the resilience of the UK economy at the start of the year is a testament to its underlying strength, especially in the services and production sectors.
However, there is an awareness of the challenges that lie ahead. The impact of the recent national insurance hike and the ongoing global tariff war has yet to be fully reflected in the data, and many businesses are feeling the strain. Research indicates that 82% of firms believe the NI increase will affect their operations, influencing investment, recruitment, and pricing strategies. This leaves many business owners asking when they can expect some relief.
There is a strong belief that urgent action from policymakers is needed to support businesses. A clear tax roadmap—covering national insurance and business rates—would provide much-needed certainty and help firms plan for the future. Additionally, signing off on more infrastructure projects across the UK could significantly bolster SMEs and stimulate economic activity.
As these challenging times are faced, the upcoming UK-EU summit is seen as a crucial opportunity for the government to deliver on its promise to improve trade relations. With the right measures, there is optimism that these hurdles can be navigated and that the economy can continue to build resilience
