Government urged to cut costs on business as economy shows strong growth

A leading business figure in Coventry and Warwickshire has urged Government to keep listening to firms if they want to maintain economic growth.

GDP – the measure of economic output – grew by 0.7 per cent in the third quarter of 2026, which is much stronger than most organisations had forecast.

It builds on 0.6 per cent and 0.5 per cent growth in the previous two quarters.

Corin Crane, chief executive of the Coventry and Warwickshire Chamber of Commerce, said: “The growth numbers so far this year have surpassed all expectations when you look at the global headwinds that businesses have been facing.

“It is, once again, a sign of the resilience and innovation of firms across our region who have contributed to these positive figures.

“However, I would urge Government not to be complacent. We speak to businesses of all sizes and sectors on a daily basis and we survey companies through our Quarterly Economic Survey (QES) and they are still finding it tough.

“The cost of doing business has gone up dramatically over the past ten years and firms are grappling with that, as well as the new rules around the Employment Rights Act.

“So, I would urge Government to hear that message and look at measures that reduce those burdens and also encourage investment, trade and employment.”

Stuart Morrison, research manager at the British Chambers of Commerce said: “Today’s preliminary data showing growth of 0.7 per cent in Q3, shows a resilient economy weathering some of the impact of global shocks. 

“It’s encouraging that the UK outpaced Germany, France and Italy, trailing only the US among G7 economies reporting Q3 data so far. It is the first time UK GDP has grown by at least 0.5 per cent for three consecutive quarters since the post-pandemic recovery in 2021–22.

“With some of the resilience built on the momentum of AI, it’s crucial that government and business work together to help every firm seize the technology moment.

“But dig below the headline and there are signs of an emerging two-speed economy.

“Investment by a few larger firms and sectors is driving growth. For the vast majority of SMEs, investment is flat.

“Our latest survey shows just 17 per cent of firms expect to increase invest in the coming months, unchanged on the quarter and a post-pandemic low. 

“Last month’s Budget was a missed opportunity to shift the economic dial for SMEs. We need government to remain laser focused on cutting the cost of doing business, improving the hiring landscape and boosting export opportunities. 

“Next Friday’s leaders' summit in Brussels must be a moment to agree practical changes to the UK-EU trade deal that will enable growth.”

Firms can fill in the Chamber’s Quarterly Economic Survey here: https://link.webropolsurveys.com/R/21D7D51F56AE475D