Responding to the latest GDP data, published by the Office for National Statistics this morning, Suzanne Caldwell, Managing Director at the Cumbria Chamber of Commerce said:
“Faced with global headwinds from the Iran conflict, the UK economy showed welcome resilience in Q2, growing by 0.4%, according to today’s first estimate.
“The service sector performed particularly robustly, alongside a welcome return to growth in construction.
“But the headline figures shouldn’t disguise the cocktail of cost pressures choking long-term business growth.
“The British Chambers of Commerce (BCC) Quarterly Economic Survey results for Q2 showed that business conditions have weakened, with fewer businesses reporting increasing sales and inflation re-emerging as a leading concern.
“Most businesses are now experiencing policy as downside risk rather than opportunity – with the rise in employers NICs a prominent example, still being felt almost two years on. Reducing the cost and complexity of the administrative burden would give many businesses space to grow.
“This isn’t a new problem. BCC analysis shows domestic policy-driven costs for a typical SME have risen by more than 70% over the past decade, placing further pressure on businesses already facing challenging conditions.
“The Autumn Budget must be a game changer for stronger, sustainable growth. We need measures that boost trade, investment and productivity. The Chancellor must back business, cut costs and deliver growth.”
How Much Have Domestic Policy Costs Risen for Your Business?
Since 2016, domestic policy-driven costs have added significant pressure to UK businesses. BCC modelling shows that for a typical SME, these costs have risen by more than 70%, with around a quarter of that increase coming since the Autumn 2024 Budget.
The BCC Business Cost Stack Calculator is a useful tool for businesses to understand how rising policy-driven costs may be affecting them. By entering your current 2026 figures, you can see how your business’s domestic policy-driven costs have changed since 2016, helping you understand the cost pressures your business is facing.
By submitting your figures anonymously, you can also help the BCC build a stronger evidence base on the real cost pressures facing businesses across the UK. This evidence helps us demonstrate the scale of the challenge to Government and make the case for policies that support businesses to grow.
We encourage as many businesses as possible to use the BCC Cost Stack Calculator. The more businesses that take part, the stronger the evidence we have to demonstrate the scale of these cost pressures and make the case to Government for action to reduce the costs facing businesses.
