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Q2 economic growth masks ‘cocktail of cost pressures’

The UK economy grew by 0.4% between April and June, according to official data from the Office for National Statistics (ONS).

The British economy is now 1.2% bigger than a year ago but the British Chambers of Commerce has urged caution.

Stuart Morrison, Research Manager at the British Chambers of Commerce, said: “Faced with global headwinds from the Iran conflict, the UK economy showed welcome resilience in Q2, growing by 0.4%.

“The service sector performed particularly robustly, alongside a welcome return to growth in construction. 

“But the headline figures shouldn’t disguise the cocktail of cost pressures choking long-term business growth. 

“This is not a new problem. Our analysis shows domestic policy-driven costs for a typical SME have risen by more than 70% over the past decade. 

“The Autumn Budget must be a game changer for stronger, sustainable growth. We need measures that boost trade, investment and productivity. In short, the Chancellor must back business, cut costs and deliver growth.” 

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