Government must build on momentum of positive Q1 growth – Chamber

Business leaders today warned the Government not to “rest on its laurels”, as new figures revealed faster than expected economic growth in the first three months of the year.

According to the Office for National Statistics (ONS), the UK economy grew by 0.7 per cent in the January to March period.

It was the best quarter for the economy since the start of 2024 and above the 0.1 per cent growth rate recorded at the end of last year.

Growth was driven by a 0.7 per cent expansion in the services sector.

The ONS said production output, which includes manufacturing, rose by 1.1 per cent between January and March.

The construction sector was flat, recording 0 per cent growth.

Raj Kandola (pictured), director of external affairs at Greater Birmingham Chambers of Commerce, said: “The Chancellor will no doubt be delighted with this morning's GDP figures mainly driven by service sector activity.

"However, the Government can't afford to rest on its laurels given the uncertainty caused by the US tariffs and the eye watering cost pressures many firms face on a daily basis - as evidenced on the early data we've collected as part of our latest Quarterly Business Report.

"Ahead of the Autumn Budget, the Chancellor needs to build on this momentum and use the upcoming statement to set out a plan to bring down the cost of doing business, strengthen overseas trade links and unlock infrastructure investment."

The GBCC is currently surveying for its next Quarterly Business Report, which will help stakeholders across the region to better understand the challenges Greater Birmingham businesses are facing.