Economy grows but soaring costs mean business needs support

Scott Knowles (Credit: East Midlands Chamber)

The East Midlands Chamber has warned above expected 0.3% growth in GDP is ‘no sign of improving trading conditions’ as it renewed its call for greater support for business amid high business rates, rising fuel costs and inflation.

The estimated figure for March, published by the Office for National Statistics, is higher than was widely anticipated by economists, while the first three months of the year showed growth of 0.6%.

East Midlands Chamber Chief Executive Scott Knowles said: “A growing economy is what we want to see and ordinarily, if it rises over a sustained period, that would be a sign of health. We’re not in times like that. With the ongoing Middle East conflict, it’s unlikely that there will be further growth in the coming months and it’s more likely that growth will stall.

“There is a wall of pressure on business from multiple angles, all at the same time. This is no sign of improving trade conditions and that’s why support from policymakers is needed. Business rates are disproportionately impacting hospitality, manufacturing and smaller firms; inflation is expected to soar further and we’ve got 5.5% unemployment in the East Midlands with fewer than half of businesses in the region having attempted to recruit, according to findings in our Quarterly Economic Survey.

“Businesses should not be hesitant about making investment plans; they must be incentivised so they can make progress. It’s essential that business is placed front and centre when it comes to policy and support prioritised when trading is as tough as it is. 

“The Chamber published a landmark document – the Framework for Growth – which outlines actions that, if implemented, would unlock growth in the East Midlands, like bringing in more energy support packages, reforming business rates, reviewing regulation, accelerating devolution and investing in skills and infrastructure.”