'Underlying momentum building' as economic growth continues - Chamber

The UK economy is edging closer to its pre-pandemic growth levels, according to new figures.

And Greater Birmingham Chambers of Commerce has urged the Chancellor to set out a comprehensive plan in his Autumn Budget to help businesses flourish in the coming months.

According to new figures from the Office for National Statistics (ONS), the UK economy grew by 0.4 per cent in August as more people dined out, went on holiday and attended music festivals.

The services sector made the biggest contribution to economic growth in the first full month after all Covid restrictions were lifted in England.

Arts, entertainment and recreation grew 9 per cent, while there was also more demand for hotels and campsites.

However, the Chamber says the Chancellor must set out a plant to address the rising cost pressures that are facing firms.

Raj Kandola (pictured), head of policy at Greater Birmingham Chambers of Commerce, said: “ As national restrictions continued to ease over the summer, it 's pleasing to see the continued upturn in economic activity as we edge closer to pre-pandemic growth levels.

“The underlying momentum seems to be building across large parts of the economy - especially as the worst effects of the so-called 'pingdemic ' eased off in July.

“However, as our latest Quarterly Business Report revealed, significant supply headwinds remain in the form of labour and supply shortages coupled with the worrying rise in energy prices which could restrict a recovery in the short term.

“We would encourage the Chancellor to use the upcoming Autumn Budget to set out a comprehensive plan to tackle the rising costs that firms face in conducting business and create an entrepreneurial platform which will help them flourish in the coming months. ”

Click here to view our latest Quarterly Business Report.