The UK economy recorded zero growth in July, according to the Office for National Statistics, prompting concern among East Midlands businesses. The region’s firms continue to navigate rising costs, with higher employer National Insurance contributions, an increased national living wage, and inflation reaching 3.8% last month.
Data from the East Midlands Chamber’s Quarterly Economic Survey shows fragile confidence, with only three in ten businesses expecting higher profits over the next year. Inflation and corporate taxation remain the primary concerns, reflecting the challenging trading environment.
The Chamber has highlighted the potential impact of upcoming legislation, urging changes to the Employment Rights Bill to reduce administrative burdens and associated costs for companies. Firms are seeking clarity and support ahead of the Autumn Budget on 26 November, stressing the importance of avoiding additional tax pressures.
Businesses in the region are contending with sustained operational and financial strain, and the latest GDP figures underscore the need for policy measures that prioritise firm resilience and cost management.
