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Today's GDP figures: Successive stalling in the service sector - has your business felt an impact?

Journalist: Katie Elliott, Daily Express

ended 14. December 2024

We're looking for commentary from businesses on today's GDP figures.

  • Has the Autumn Budget impacted your operations and if so, how?
  • Are there specific measures from the Budget that concern you as they take effect in the coming year?
  • Have changes in customer demand or spending habits affected your business in light of economic conditions?
  • What support, if any, would you like to see from the government to help your business navigate these challenges?

3 responses from the Newspage community

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Editor
Kate Allen
Owner at Finest Stays
Customer spending habits have shifted noticeably: fewer people are booking UK holidays, and lead times keep shrinking, which only amplifies the strain. We introduced a £50 deposit to secure bookings, and while that has eased some short-term cashflow concerns, there’s no escaping the fact that real or perceived drops in spending power have taken a bite out of our bottom line.

The new Employers’ National Insurance banding makes hiring additional staff look about as appealing as having a Christmas party with Reeves and Starmer. We’re more inclined to outsource to freelancers now, as the potential savings outweigh the red tape and financial risks.

A genuine pro-growth strategy—not half-measures—would go a long way in buoying both business confidence and the wider economy.
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Editor
Tony Redondo
Founder at Cosmos Currency Exchange
I would like to plead with the government to do no more harm. Ideally get out of the way, cut back on red-tape and stop self-harming the economy.
The recent GDP figures reveal the significant challenges facing UK businesses. Following the Budget, many companies have paused their operations due to increased National Insurance and minimum wage rates, leading to shelved expansion plans if not outright cutbacks on staffing levels.
Changes in customer demand are evident, with households cutting essential spending at the fastest pace in five years, impacting overall business performance. Our personal clients are concerned about their job security. Our business clients have seen a double whammy. A rise in their cost base due to the budget tax changes and falling sales as their customers tighten their belts. Addressing these concerns will be vital for fostering a more stable economic environment as we move into 2025.
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Richard O'Connor
Director at First Mats
So far, our business hasn’t experienced a slowdown in growth, but the sentiment among our customers and clients is increasingly cautious. Many are concerned about their future as they grapple with the impact of changes like the employers' NI, which directly affect spending and staffing decisions. There’s a growing sense of unease across the market, which could have long-term implications for economic recovery. My primary concern lies with the lack of business ownership experience within the cabinet. This disconnect makes it difficult for policymakers to fully appreciate the practical effects their decisions have on the private sector. Labour’s appointment of James Timpson as minister for prisons was a refreshing example of bringing real-world expertise into government. Why not adopt a similar approach for business? Having a voice for business owners in cabinet meetings could foster more informed, balanced policies that support growth and innovation.