The UK economy grew by an estimated 0.3% between April and June, down from 0.7% in the previous quarter, according to the Office for National Statistics. The slowdown highlights ongoing pressures for firms across the East Midlands.
Recent survey data indicates nearly one in three businesses in the region expect profits to decline over the next 12 months. Rising costs, including National Insurance contributions and higher minimum wages, continue to strain operations. Inflation remains above the government’s 2% target, with corporate taxation among the top concerns for companies.
Businesses report that challenging trading conditions are limiting their ability to invest and expand. Policymakers are under pressure to consider supportive measures to reduce operational burdens, including reviewing proposed employment legislation and ensuring upcoming budgets do not further increase taxation.
The combination of slower economic growth, persistent cost pressures, and regulatory changes underscores the need for targeted interventions to help businesses navigate a difficult trading environment and maintain competitiveness.
