Expert Opinion: Economic growth should unite all parties in run-up to election

The last British Chambers of Commerce Quarterly Economic Survey before the General Election shows that manufacturing and service firms reported slightly weaker growth for the start of 2015.

The QES is one of Britain’s largest and most authoritative private business surveys, based on more than 7,500 responses from firms employing around 850,000 people.

While the Q1 2015 results show weaker balances in most areas compared with Q4 2014, quarter-on-quarter trends support the view that the economy is growing at a steady rate.

However, balances are lower in the key areas of export sales and investment, which are crucial to the rebalancing of our economy.

It is encouraging to see that when our members who took part in the survey were asked if they were recruiting staff – over 50 percent answered positively. These were broadly for full time, permanent, jobs.

This showcases a high level of job creation with companies in the Thames Valley, businesses are doing well and they are still well placed to grow and – indeed flourish – throughout 2015.

Current Q1 sales, turnover, profitability and advanced orders continue to improve and at this point, inflation remains the biggest threat, followed by competition.

However, there is much that government can do to help businesses to grow in the years ahead – to help stimulate Thames Valley economic growth.

It is not a huge surprise to see slightly weaker numbers at the start of the year, after a very strong fourth quarter for many firms. Crucially, our survey demonstrates that businesses remain optimistic, though they expect to grow at a slightly slower rate over the coming months.

The conclusions are by no means a cause for alarm, but they are a salutary reminder that the UK still faces obstacles on the path to sustainable, long-term growth.

Given that all parties agree that the UK needs to strengthen its trade performance, and that we need to encourage our businesses to invest more, these should be issues that unite – rather than divide – the parties leading up to May 7.