Slowdown in economic growth shows the scale of challenges for businesses

Weaker expansion in GDP underlines the need for supportive policies to help firms navigate tough trading conditions, East Midlands Chamber has said.

The reaction follows estimated figures from the Office for National Statistics revealing growth of 0.3% between April and June, slower than the previous three-month period of 0.7%.  

East Midlands Chamber Chief Executive Scott Knowles said: “While 0.3% GDP growth is above the level anticipated by economists, a slowing from earlier in the year will be less welcome by businesses, especially when trading conditions have been so tough.

“A fast-growing economy alongside supportive policies is what firms want to see, enabling them to expand and invest, especially when their costs have rocketed and confidence has taken a tumble in recent months.

“Despite today’s growth announcement, almost a third of East Midlands firms expect their profitability to worsen over the next 12 months, according to the findings of our Quarterly Economic Survey for the region. With corporate taxation and inflation – still well above the government’s 2% target – topping the list of concerns highlighted by businesses, it’s essential they are protected from anything that could make trading even harder. 

“Having already had to fund hiked National Insurance contributions and a higher national living wage at a time that businesses remain entrenched in a crisis in the cost of doing business, political leaders must do what they can to level the playing field.  That means listening to the concerns of businesses and changing the Employment Rights Bill as we have requested in a letter sent to MP’s and it means making sure the Autumn Budget does not further raise the tax burden firms face.”