"Businesses need a lifeline," Coventry and Warwickshire Chamber of Commerce tells Government

Business leaders in Coventry and Warwickshire are calling on the Government to throw them a lifeline as the economy continues to tread water.

The UK economy grew by 0.1 per cent in the first quarter of 2023 but figures from the ONS also showed it fell in March by 0.3 per cent.

Corin Crane, chief executive of the Coventry and Warwickshire Chamber of Commerce, said: “The GDP figures show that the economy is treading water and businesses are doing an incredible job in the face of so many issues to stay afloat. They need help.

“What the latest figures also tell us is that the economy hasn’t yet reached pre-pandemic levels, which shows just how difficult life has been for anyone in business over the past three years.

“We’ve seen only this week that inflation is remaining high and that has led to another interest rate rise, which is making it so hard for firms to plan with any certainty around their cost base.

“In the Chamber’s most recent Quarterly Economic Survey, we saw that companies across the patch are seeing international trade decrease and that is something that has to be fixed whether it is trading with the EU or beyond.

“Firms that export are more likely to survive and grow which has a positive knock-on effect for the whole economy. This is an area that Government can help to fix immediately and it would bolster growth, which is something we all want to see.”

David Bharier, Head of Research at the British Chambers of Commerce, said: “The first estimate of GDP for Q1 2023 of 0.1 per cent growth indicates the UK is avoiding a recession and shows the resilience of businesses who are having to weather serious headwinds.

“However, this also means we're in a period of virtually no growth. The core issues affecting British businesses, such as unprecedented inflation, energy price shocks, and record tightness in the labour market, have not gone away.

“A further rise in the interest rate will also impact firms that have resorted to using finance to manage cash flow.

“The Government must now act fast and set out a plan for economic growth to mitigate the impacts of these shocks. Businesses need to see a reduction in the cost and burden of trading internationally, particularly with the EU, as well as support for those continuing to be hit by record energy costs.”