GDP grew 0.1% in the last three months of 2024 but additional costs like higher National Insurance contributions and an increased minimum wage will hit businesses hard, says East Midlands Chamber.
The October to December estimated figure from the Office for National Statistics followed zero growth in the previous three months.
East Midlands Chamber Director of Policy and Insight Richard Blackmore said: “Slight growth gives mild comfort in holding off threat of recession for the time being, but with a juggernaut of higher costs hurtling toward businesses, just operating normally is going to get much more expensive from April. Our Quarterly Economic Survey has already shown protective measures come in, with firms pulling back on intended plant, machinery and recruitment spend.
“The new government need to act – the time for action is right now, to support businesses when they need it most. We’ve heard plenty of promise around long-term strategy, but what’s the position for business support in the short and immediate term? April is worryingly close, when businesses will see their cost sheet rocket – National Insurance contributions higher than they were, a lower level where those payments start and a raised national minimum wage.
“Businesses should be worrying about competitors, not losing sleep over whether costs imposed on them allow them to keep the doors open. Corporate taxation, inflation and business rates topped the list of concerns in our Quarterly Economic Survey, which tracks business performance and sentiment across the region. Political leaders need to step in and bring in supportive measures straight away so businesses can get on with doing business without worry and we see real growth in the East Midlands.”
To view East Midlands Chamber’s Quarterly Economic Survey for Q4 2024 click here.
