Responding to the latest GDP data, published by the Office for National Statistics this morning, David Bharier, Head of Research at the British Chambers of Commerce, said:

“Today’s data shows the first annual estimate of GDP came in at 1.3% in 2025, just below our own forecast of 1.4%. But quarterly growth was weaker than expected, at just 0.1% in Q4.

“Beneath the headline, the quarterly data paints a subdued picture. Services were flat, construction fell sharply, and business investment dropped in the quarter. That combination points to weak momentum going into 2026 and underlines the persistent low growth trap the UK faces.

“The past twelve months have been marked by uncertainty and rising costs for firms across the UK. Our latest survey of UK firms in Q4 shows that most SMEs are holding back on investment, with rising taxation and cost pressures are cited as the top two concerns.

“Improving the outlook now depends on restoring business dynamism. Government must move from strategy to delivery – backing infrastructure projects, speeding up planning decisions, addressing skills gaps, and strengthening export support – so firms can invest, export and grow.”