German-British Chamber urges UK government to reset its relationship with EU

The UK must look to foster close ties with the EU in a bid to drive growth.

That’s the view of the German-British Chamber of Industry & Commerce, following the release of its Spring survey.

It says the German-British business community is upbeat about its UK business activities, but global challenge and weaker economic growth are beginning to bite.

Therefore, companies hope that the UK Government prioritises resetting its relationship with the EU.

According to the survey, approximately half of survey respondents view their own UK operations as performing positively or very positively, 34 per cent as stable, and 19 per cent as negatively.

These numbers paint a somewhat similar picture compared to the autumn of last year, suggesting that most companies continue to operate reasonably successfully in the UK.

As a result, investment plans within the German-British business community have remained broadly unchanged, with one third aiming to expand their activities.

In contrast to the positive outlook for their own operations, the sentiment towards the overall development of the UK economy has continued to deteriorate compared to six and 12 months ago.

Currently, only 10 per cent of firms (down from 21 per cent in autumn 2024 and 34 per cent in spring 2024) expect the UK economy to improve over the coming 12 months, with 48 per cent expecting a sluggish performance (up from 33 per cent in autumn 2024 and only 19 per cent in spring 2024).

As in past surveys, political uncertainty, administrative hurdles resulting from Brexit, the politics of the new US administration, as well as lack of demand (as a result of the weaker economic outlook) continue to be major challenges for doing business in the UK.

However, in line with the slightly weaker economy, addressing skills shortages has become somewhat less challenging.

Unsurprisingly, the majority (63 per cent) of companies, even those focused solely on the UK market, still expect to be negatively impacted by the current US trade policies, underlining the global interconnectedness of European trade relations.

Dr Ulrich Hoppe (pictured), director General of the German-British Chamber of Industry & Commerce, commented, "The survey results suggest that despite the deteriorating economic outlook, the UK continues to be a good place to do business, but global challenges loom large and a closer relationship with Europe is a crucial element in fostering growth.”