Reacting to the latest GDP data published this morning by the ONS, Stuart Morrison, Research Manager at the British Chambers of Commerce, said:
“With a backdrop of weak business and investment confidence, sluggish Q3 growth of just 0.1% is unsurprising.
“But the data suggests the cyber-attack on JLR hit manufacturing badly and made a mediocre performance worse. The overall 0.5% contraction in production counteracted growth of 0.2% in services and 0.1% in construction.
“The lack of strong, consistent growth means this month’s Budget is a make-or-break moment for business – it must deliver for firms across the UK. Our latest survey of over 4,600 businesses shows a quarter have scaled back their investment plans, and a fifth are expecting their turnover to worsen over the next year.
“That’s why we are clear, there must be no more taxes on business in November’s Budget. The Chancellor must also use her statement to tackle the skills crisis, help firms export and turbocharge infrastructure projects.
“She faces difficult choices, but hitting businesses in the pocket again would be the wrong move. Recent speculation about a new cap on pension salary sacrifice schemes is worrying, as it would pile more costs on employers and limit investment.
“The economy will continue to struggle unless business costs are cut and firms are given the right tools to invest, recruit and trade.”
More information on the GDP data for Q3 can be found here.