The UK’s economic landscape is showing promising signs of recovery, with recent data indicating a notable upturn. Key voices in the business community are urging the new Government to seize this momentum and implement growth-focused policies to sustain and enhance this positive trajectory.

, National Chair of the Federation of Small Businesses (FSB), responded to the Office for National Statistics figures showing a 0.4% rise in GDP for May:

“The good growth registered in May picks up the momentum from the strong economic expansion seen in the first quarter, following April’s lull. To achieve the Prime Minister’s ambition to drive wealth creation in every community, the new Government should look to quickly build on this result with further pro-growth policies targeted at small firms and self-employed people. The King’s Speech next week will provide an excellent opportunity for the new Labour Government to show it is truly committed to the success of the small business community.

“Shortly after the General Election was called, we pulled together over 150 growth-focused recommendations to form a manifesto for small businesses and the self-employed. In it, we highlighted issues such as the need for planning reform and a Small Housebuilders Strategy to ensure that smaller construction firms are at the heart of delivery plans for new homes and upgraded infrastructure, as well as drawing back foreign visitors by reintroducing an expanded tax-free shopping scheme, which could add billions to the economy.

“In order to invest in growth, small businesses need access to affordable finance of various kinds, without lenders discouraging risk-taking by demanding personal guarantees as a blanket policy. We were pleased to secure the evolution of the Recovery Loan Scheme into the Growth Guarantee Scheme, which is now live and making more small business bank loans viable. As a recipe for the growth we all need, we hope the new Government makes sure every decision it takes considers the needs of small firms, as well as the indispensable contribution they make to the economy.”

Mike Randall, CEO at Simply Asset Finance, emphasised the significance of the GDP rise and the need for continued support for small and medium-sized enterprises (SMEs):

“The road to economic recovery has been long and arduous for UK PLC so today’s rise in GDP is a welcome sign that we’re finally making positive progress. Given that the new Government has made securing lasting growth its top priority, its focus must now be on creating the conditions for SMEs to thrive. Growing businesses are never short of ideas but funding gaps, a lack of access to necessary skills, and productivity challenges can still stifle their growth. The new Government’s plans to tackle issues like late payment, high business rates, and business energy costs, sound promising, but will only deliver real change if they put these pledges into action: building an environment where SMEs can reach their true potential.”

George Lagarias, Chief Economist at Forvis Mazars, shared his optimistic view on the UK’s economic progress:

“The UK economy is finally getting out of its rut. UK output for May doubled expectations, growing by an estimated 0.4% for May. The GDP number surprised on the upside, for the second time in three months. Right now, the British economy is at a sweet spot. It is growing fast enough to recover from a recession, but not yet at a pace which would prohibit rate cuts later this year. We still think that the Bank of England will likely perform at least one rate cut in 2024, and it may do so against an improving economic backdrop.”

As the UK continues to navigate its path to economic recovery, the collaboration between government policies and the business sector will be crucial in maintaining and accelerating growth. The calls for targeted support for small businesses and SMEs highlight the vital role these entities play in driving the nation’s economic health.