The UK economy unexpectedly grew in the final three months of last year following a boost to the construction and services sectors.
The economy expanded by 0.1% between October and December, according to figures from the Office for National Statistics.
But with tax rises coming into force in April, concerns remain that economic growth will remain sluggish for some time.
Stuart Morrison, Research Manager at the British Chambers of Commerce, said: “Confirmation that the economy grew slightly in Q4 is a small bit of relief for businesses in challenging times. However, regardless of the headline data, it’s clear that many firms faced a chill of uncertainty in the final months of last year.
“Our research shows the autumn budget created a challenging menu of cost pressures for businesses to try and stomach.
“The national insurance and minimum wage hikes are pushing firms to make tough decisions simply to balance the books. Changes to the employment rights legislation in the coming months are adding further costs and concern for businesses.
“Boosting business investment is fundamental for the UK to achieve stronger growth in the long term. Our immediate solutions for government are clear – accelerate business rate reform, green light more infrastructure projects and boost exports. Business need support to get the UK thriving, working and trading.”
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