Economy Volatile As Tariffs Hit

Responding to the latest GDP data, published by the ONS this morning, Stuart Morrison, Research Manager at the British Chambers of Commerce said: 

“With 0.7% growth in the 3 months to April, the UK economy enjoyed a strong start to the year as firms increased trade ahead of the volatility of tariff announcements.

“However, a larger than expected fall in UK GDP for April suggests the UK is now turning more squarely into headwinds.

“The UK’s partial trade deal with the US has offered some relief, but the lowering of tariffs on steel, aluminium and automotives is not yet fully assured.

“This continued uncertainty will inevitably hamper firms’ investment decisions and long-term growth prospects.

“Our research also shows 82% of firms think the National Insurance rise will impact their operations – hitting investment, recruitment and prices.

“While yesterday’s spending review offered some welcome investment in infrastructure, which will benefit supply chains, businesses will be keen to see further action from government.

“A clear tax roadmap, covering national insurance and business rates, would give them some certainty to plan for the future.

“Additionally, a timeline for when they might see practical changes to UK-EU trading arrangements would also be very welcome by firms navigating ongoing trade uncertainties.” 

More detail on the ONS data can be found here.