Responding to Office for National Statistics figures showing that GDP rose by 0.4% in the month of December, and by 0.1% in Q4 2024, Martin McTague, National Chair of the Federation of Small Businesses (FSB) said:
“News that there was a modest up-tick in growth in the weeks running up to Christmas is far preferable to the alternative but flat growth registered across the final quarter will not come as a surprise to many small firms.
“The fall in production in the last quarter shows that evidence of a feel-good factor from the end of last year is sadly lacking, with members telling us they are finding trading conditions difficult, to say the least.
“With tax changes coming up in April, and the looming Employment Rights Bill which is set to put a big dampener on small businesses’ willingness to take on staff, any economic uplift that has been carried over from last year will be a help, but more must be done to offset turbulence.
“The recent cut in the base rate is a good sign, but will not by itself be enough to give small businesses the confidence they need to choose to invest in their operations, which is what is needed for long-term, substantial and sustainable growth in GDP.
“The Government has loudly stated its commitment to growth, which we agree with, but we need to see words turned into actions in the shortest possible timeframe, so that this positive momentum can snowball into a virtuous circle of investment, productivity gains, and greater prosperity in every part of the UK.”
ENDS
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About FSB
As the UK’s largest business support group, FSB is the voice of the UK’s small businesses and the self-employed. Established over 40 years ago to help its members succeed in business, FSB is a non-profit making and non-party political organisation that’s led by its members, for its members. As the UK’s leading business campaigner, FSB is focused on delivering change which supports smaller businesses to grow and succeed.
FSB offers members a wide range of vital business services, including access to finance, business banking, legal advice and support along with a powerful voice in Government. Each year FSB also runs the UK’s Celebrating Small Business Awards. More information is available at www.fsb.org.uk. You can follow us on twitter @fsb_policy and on Instagram @fsb_uk.