The UK economy shrank unexpectedly in January, contracting by 0.1% according to the latest figures released by the Office for National Statistics.
Stuart Morrison, Research Manager at the British Chambers of Commerce, said: “With businesses facing an impending avalanche of cost pressures, it’s unsurprising that growth is in trouble. With GDP shrinking in January and an expansion of just 0.2% for the three months prior, the economy was treading water.
“Our latest forecast predicts a tough year ahead, with the economy growing just 0.9% in 2025, driven largely by increased government spending. The national insurance hike is looming large for businesses and will hit investment, recruitment and prices in the coming months.
“To unlock growth, the government should publish a tax roadmap on national insurance and business rates. This would enable firms to know when cost-pressures will ease, allowing them to plan their investment decisions.
“They also want to see movement on infrastructure development and renewed support for exports, so they can navigate the choppy waters ahead with more confidence.”
Full detail on the ONS data can be found here.
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