The UK economy grew by 0.7% in the first quarter of 2025 according to figures released this morning by the Office for National Statistics, offering a stronger-than-expected start to the year.
However, many businesses both in Staffordshire and across the country continue to face significant pressures, with many calling for greater policy certainty and support.
Nationally, the services and production sectors were key drivers of growth. The British Chambers of Commerce (BCC) welcomed the figures but stressed that wider economic challenges are far from over.
Stuart Morrison, Research Manager at the British Chambers of Commerce, said: “Better than expected Q1 growth of 0.7%, is evidence that the UK economy held up well at the start of the year, despite mounting headwinds. Strong performances in the services and production sectors are particularly welcome.
“However, context is crucial, as we’ve yet to see data showing the impact of the national insurance hike or the global tariff war.
“Our research shows 82% of firms saying the NI rise will impact their business – hitting investment, recruitment and prices. Firms are left asking, when are they going to get a break?
“Businesses want urgent action from policymakers to help them invest, trade and recruit. A tax roadmap, covering national insurance and business rates, would give firms the certainty they need to plan ahead. Signing off more infrastructure projects in all parts of the UK will help support SMEs.
“In challenging times for our exporters, next week’s UK-EU summit is a chance for the Government to deliver on its promise to improve the trading relationship.”
Locally, business sentiment mirrors these concerns. Rachel Laver, Chief Executive of Staffordshire Chambers of Commerce, said that while early-year growth was reassuring, many Staffordshire firms remain cautious.
Rachel said: “Today’s figures provide welcome reassurance that the UK economy is moving in the right direction, but our local businesses in Staffordshire are still navigating very real pressures”.
“The Government must now follow up this early growth with concrete support for business investment and long-term planning. A stable, strategic approach will be key to unlocking further growth here in our region.”
