UK GDP grew by just 0.1% in August, following a revised 0.1% decline in July, according to the Office for National Statistics. Over the three months to August, the economy expanded by 0.3%.
While this uptick signals a slight recovery, it does little to relieve pressure on businesses across the East Midlands. Many firms continue to face high operating costs and limited consumer demand as they anticipate the Autumn Budget on 26 November, which could introduce further tax rises.
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.”
The region’s business community remains concerned about inflation and corporate taxation, issues that continue to weigh on margins and investment decisions. Previous policy measures, including higher National Insurance contributions and increases to the national living wage, have already tightened cash flow for employers.
Industry leaders are urging the government to prioritise business-friendly reforms in the upcoming Budget, particularly those related to Business Rates and investment incentives. With growth sluggish and confidence fragile, firms are seeking fiscal measures that support expansion rather than impose new financial burdens.
