The latest GDP figures from the Office for National Statistics (ONS) show that the UK economy grew by 0.7% in Q1—outperforming expectations and offering some welcome news for businesses across the country.
Commenting on the data, Stuart Morrison, Research Manager at the British Chambers of Commerce, said the figures were “evidence that the UK economy held up well at the start of the year, despite mounting headwinds.” Strong showings from the services and production sectors in particular have helped lift confidence in the short term.
However, as Morrison noted, the wider picture remains uncertain. Key challenges—including the recent National Insurance rise and global trade tensions—have yet to fully play out in the data.
According to BCC research, 82% of businesses say the NI increase will impact their operations, with knock-on effects on investment, recruitment and pricing.
The message from businesses is clear: support is still urgently needed. There are growing calls for a clear tax roadmap to help companies plan for the future, along with more infrastructure investment across all regions to support SMEs and stimulate growth.
Looking ahead, the upcoming UK-EU summit presents a crucial opportunity for Government to deliver on its promises to ease trade barriers and strengthen international partnerships—an issue high on the agenda for many Lancashire exporters.
While the economy has shown encouraging resilience, it’s vital that Government continues to work with the business community to address the challenges that lie ahead.
