The UK economy grew by 0.1% in the final three months of 2024.

Stuart Morrison, Research Manager at the British Chambers of Commerce, said:

“Confirmation that the economy grew slightly in Q4 is a small bit of relief for businesses in challenging times. However, regardless of the headline data, it’s clear that many firms faced a chill of uncertainty in the final months of last year.

“Our research shows the Autumn budget created a challenging menu of cost pressures for businesses to try and stomach. The national insurance and minimum wage hikes are pushing firms to make tough decisions simply to balance the books. Changes to the employment rights legislation in the coming months are adding further costs and concern for businesses.

“Boosting business investment is fundamental for the UK to achieve stronger growth in the long term. Our immediate solutions for government are clear – accelerate business rate reform, green light more infrastructure projects and boost exports. Business need support to get the UK thriving, working and trading.”

However, goods imports decreased and the value of goods exports remained stable in December 2024.

William Bain, Head of Trade Policy at the BCC, said: 

“The final trade data for 2024 shows the UK’s export performance is continuing to operate at two different speeds.

“Exports of services remain robust and are generating solid growth across European and wider global markets, but our performance in manufactured goods is lagging substantially behind, year after year.

“In 2025, it is vital that we continue to make the most of our competitive advantage in services, but more must be done to bolster exports of goods.

“The key to this will be a bold and ambitious Trade Strategy. It must expand UK services across global markets while mitigating the effects of new tariff or trade barriers on goods and supply chains.

“The reset of UK-EU trade relations could also remove costs and red tape which are holding back exports for businesses.

“If this is coupled with effective implementation of new UK trade agreements, such as our membership of the Pacific trade bloc, then there will be new opportunities for firms.

“But we also need to see better export support wrapped around SMEs to meet their ambitions to invest and grow.”