East Midlands Chamber has said GDP growth of 0.1% in August will be of ‘little comfort’ to the region’s businesses facing the threat of rumoured tax increases at the Autumn Budget on 26th November.
The latest monthly data followed a fall of 0.1% in July, revised by the Office for National Statistics from its original publication of no economic growth in July. GDP grew 0.3% in the three months to August.
East Midlands Chamber Director of Policy and Insight Richard Blackmore said: “With the Autumn Budget just weeks away and increasing speculation of tax rises of some kind, businesses will be anxious. A slight rise of 0.1% in monthly GDP will be of little comfort to firms that had higher costs imposed on them from the last Budget and don’t want more headaches.
“Corporate taxation and inflation continue to be the greatest concerns of businesses across the East Midlands, according to the Chamber’s Quarterly Economic Survey.
“The last Budget brought the announcement that employers would have to pay higher National Insurance contributions and face a higher national living wage. When those measures came into effect inflation was soaring, adding pressure to firms to consider increasing their prices. While a slight lift in GDP is the right direction, there was a 0.1% fall in July after figures from the Office for National Statistics were revised and the economy is not as healthy as it needs to be.
“The Autumn Budget on 26th November should be seized by the Chancellor as a chance to put business first. Reform to Business Rates and incentives for businesses to investment must be a priority. It must not add further pressure on firms that have already had to make difficult decisions and find additional funds to meet the tough measures unveiled at the last Budget. To allow growth, the Budget must be supportive of business with no further tax burden.”
To view East Midlands Chamber’s Quarterly Economic Survey for Q3 2025 click here.
