‘Decisive action’ needed for growth as UK economy flatlines in January – Chamber

The UK economy saw zero growth in January and business leaders in Greater Birmingham are calling on the government to take decisive action to provide businesses with the conditions they need to succeed.

According to the Office for National Statistics (ONS), the construction sector grew by 0.2 per cent while the production fell by 0.1 per cent. The service sector showed no growth.

The ONS also said GDP grew by 0.2 per cent in the last three months. The figures cover a period before the outbreak of the Middle East conflict.

Ruth Fleet (pictured), senior policy advisor at Greater Birmingham Chambers of Commerce, said: “The data for GDP from January reflects what we continue to hear from businesses across the region, both anecdotally and through the surveying for the Quarterly Business Report.

“The cost of doing business is rising, with additional tax burdens and red tape making it harder for them to operate.

“When you combine this with geopolitical turbulence and a stubborn inflation rate, even the businesses that are growing their output are not seeing any growth in the bottom line.

“GDP will continue to stall until the government takes decisive action to give businesses the conditions they need to succeed.”