Economy returns to growth but government must not rest on laurels - Chamber

Business leaders in Greater Birmingham today warned the government “cannot afford to rest on its laurels” despite the UK economy returning to growth.

Figures from the Office for National Statistics (ONS) revealed Gross Domestic Product (GDP) – the measure of everything produced in the UK – rose by 0.2 per cent in January.

It follows the economy entering a technical recession last month after two successive three-month periods of negative growth.

When looked at over a three-month period, GDP fell 0.1 per cent up to January, compared to the three months to October.

The ONS said the customer-facing services industry, which expanded by 0.2 per cent, was the main reason for growth in January.

It was also a good month for construction, with output having increased 1.1 per cent over the month, and housebuilders who had been subdued for much of the last year.

Raj Kandola (pictured), director of external affairs at Greater Birmingham Chambers of Commerce, said: “The Chancellor will be relieved to see that GDP growth picked up ever so slightly in January and hopes will be raised that we have emerged from a short-lived shallow recession.

“However, the Treasury cannot afford to rest on its on laurels - early analysis from our latest Quarterly Business Report data revealed price pressures fuelled by inflationary pressures continue to impact local businesses.

“Whilst certain measures announced in last week's Budget such as changes to childcare arrangements will play a part in tackling deep-routed recruitment challenges, the Chancellor needs to use the coming months to set out a compelling economic plan that will drive growth and allow prosperity to flourish.”