Responding to the Chancellor’s Spring Statement, Shevaun Haviland, Director General of the British Chambers of Commerce said:

“Today the Chancellor saw a small dip in inflation, however her statement was made against a backdrop of downgraded economic growth for 2025. It all paints a challenging spring landscape as businesses struggle to bloom.

“The government must focus on reducing the cost pressures for businesses, boosting investment and exports.

“Firms are realistic, but they are also hurting. Within days they will be faced with higher national insurance (NI) contributions and a rise in the national living wage. Our research shows 82% of businesses will be impacted by the NI hike – with firms forced to raise prices, postpone investment and cut back on recruitment.

“That’s why we need a wider tax roadmap for business. The financial impact of the Employment Rights Bill has yet to be assessed by the OBR, but they expect it to be negative. The threat of US tariffs also looms large.

“The government is right to prioritise increased defence spending. It is an opportunity for the UK’s world-leading defence industry and their supply chains to grow, while protecting wider global interests. We particularly welcome plans to make it easier for SMEs to bid for defence contracts.

“Investment in construction training to get the country building is encouraging. Removing planning barriers is fundamental to getting economic growth, but businesses need confidence to build.

“It is right that the Chancellor is thinking about government efficiency and productivity. That’s what businesses have to do daily.

“For the economy to grow, businesses need to thrive.  Ahead of the Comprehensive Spending Review we’ll be working closely with ministers to ensure that they create the right environment for firms.”