Sluggish economic growth as business confidence remains an issue - Chamber

Business leaders in Greater Birmingham today urged the Chancellor to avoid hitting businesses with further tax hikes – as the UK economy posted sluggish growth during August.

According to the Office for National Statistics (ONS), the economy grew by 0.1 per cent - helped by an increase in manufacturing output and a strong performance from the health sector.

The small uplift follows a 0.1 per cent contraction during July.

The Government has made boosting the economy a key priority and pressure is mounting ahead of the Budget next month, but economists expect growth to remain sluggish over the next few months.

Many analysts expect that tax rises or spending cuts will be needed to meet the chancellor's self-imposed borrowing rules.

Ruth Fleet (pictured), senior policy advisor at the GBCC, said: “The slight growth in the economy will be a relief for the Chancellor ahead of the Autumn Budget but the business climate remains uncertain.

“Amidst rising costs and fears of further taxation, confidence continues to be an issue. Many businesses are holding back from making decisions around investment, preferring to ‘wait and see’ what happens next.

“Greater Birmingham Chambers of Commerce are continuing to support firms across the region - but we urge the Government to recognise the vital role that business plays in driving economic growth.

“Additional tax rises on business will only hamper growth further.”