Business: Economic Situation
The question
To ask the Secretary of State for Business and Trade, what assessment he has made of the Institute of Directors' finding that 75 per cent of businesses cite UK economic conditions as a negative factor affecting their organisation.
Answered by Chris McDonald
We know many businesses are facing difficulties and the situation in the Middle East is adding to their costs. We continue to promote growth through our Industrial Strategy, regulatory reform and other steps to ensure the UK remains competitive and its economic fundamentals remain strong.
Government is working closely with business groups and industry leaders to understand the pressures facing industry and develop measures to support. For example, the British Industrial Competitiveness Scheme will reduce costs for over 10,000 businesses. We are also putting in place safeguards and unlocking opportunities through international collaboration, as we have done with our FTAs in India and the GCC.
The UK had the fastest growing economy in the G7 in Q1 2026, and the IMF recently upgraded its UK growth forecast for 2026 and 2027, placing the UK 3rd in the G7 for both.
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