Firms seek relief in Autumn Budget as economic growth flatlines - Chamber

The UK economy continued to slow in July and recorded zero growth, according to figures released this morning,

The Office for National Statistics (ONS) said a decline in production offset meagre growth in services and construction.

It follows a 0.4 per cent increase in June, with the upturn in GDP marking an unexpected boost at the time figures were announced.

The manufacturing sector saw activity fall by 1.3 per cent in July, marking the biggest contraction in activity in a year.

This held back growth in the wider economy, with the services sector up 0.1 per cent thanks to expansion of 0.6 per cent for retail and construction growing 0.2 per cent.

It marks a prolonged slowing of UK economic growth, between April and June as businesses battled higher costs and Donald Trump’s tariffs came into force.

Ruth Fleet (pictured), senior policy advisor at Greater Birmingham Chambers of Commerce, said: “Figures for July show that GDP growth flatlined from its peak of 0.8 per cent in April.

“Insights from our Quarterly Business Report for the West Midlands reflect these challenges, showing that SMEs are struggling with a number of problems, from National Insurance hikes to challenges in recruitment.

“Today’s GDP data tells us what was happening earlier this year, before a number of announcements across the summer, such as Government funding of £2.4 billion to build a tramline to the Sports Quarter.

“There is hope that these long-term plans will stimulate economic growth in the region - although stubborn inflation continues to dog the Government.

“We will continue to argue that there should be no further taxation on businesses in the Autumn Budget to help build business confidence in the region.”