Chamber reiterates call for business support as GDP tumbles
The Government must step up and support businesses who have been forced to close after UK gross domestic product (GDP) tumbled by 2.6 per cent, business leaders said today
The fall in GDP during November brought to an end six months of consecutive growth, as the Government imposed fresh Covid-19 restrictions.
Services bore the brunt of the economic impact, with output falling by 3.4 per cent to 9.9 per cent - below the level of February 2020.
The production sector also fell marginally by 0.1 per cent, but there were signs of recovery from the construction sector which grew by 1.9 per cent to lift it to 0.6 per cent above its February 2020 level.
Paul Faulkner (pictured), chief executive of Greater Birmingham Chambers of Commerce, said: “Following six consecutive months of growth, it was no surprise to see economic output fall in November as the Government reintroduced tighter restrictions across the country in a bid to minimise the spread of Covid-19 as we approached the end of the year.
“Consumer spending took a hit - particularly in sectors which are reliant on footfall, however a number of city analysts were expecting the drop in activity to be more pronounced - this was likely to have been offset by the fact that schools remained open in November.
“If anything, today 's results are a testament to the resolve of many businesses up and down the country that have managed to adapt the new circumstances and continued to operate.
“Nevertheless, we are currently operating within even greater national restrictions and with schools closed for the foreseeable future, the likelihood is that its going to get worse before it gets better and the UK is facing the prospect of a double dip recession.
“That 's why it is so important the Government does the right thing and steps up to help those businesses that have been forced to close through no fault of their own.
“As we set out in our recent Back Our Businesses document, it 's essential that we see more grant funding for the firms most affected and an extension of the loan schemes to help alleviate the crippling cash pressures that many firms are facing right now and to avoid any long term economic scarring. ”
Click here to read Back Our Businesses.