Economy & Quarterly Economic Survey



The economy as a whole has a substantial impact on the way business operates. Budgets, tax, inflation, interest rates and exchange rates all affect the performance of businesses in Birmingham, the UK and beyond.

The economic outlook has continued to deteriorate in the first quarter of 2009. GDP contracted by 1.6 per cent in the fourth quarter of 2008 and is now 2.0 per cent lower than the fourth quarter of 2007. GDP currently stands at – 2 per cent. Every three months Birmingham Chamber of Commerce and Industry takes a snapshot of the city's economy in both the service and manufacturing industries. These quarterly economic surveys are then fed into the British Chambers of Commerce's national survey, which is considered to be one of the influential economic surveys in the country.

BCI Position

Birmingham Chamber's economic policy is based on the tenet that business requires a low inflation, stable growth economy. Stability is key for firms in all sectors, enabling them to plan effectively for the future.

BCI has identified the following as its five major economic policy priorities:

1. An in-depth summary regarding the implications of quantitative easing. The Bank
  of England is due to complete its £125bn spending on quantitative easing in July 
  and our members would like to see what impact this policy has had on the
  economy.
2. The implementation of a short-time wage subsidy scheme which will enable
   business to cut costs without losing any of its skilled workforce.
3. The re-introduction of the Empty Property Tax Relief. BCI stresses the 
    importance of supporting business confidence.
4. A reduction in the small companies’ rate of corporation tax. BCI welcomes the 
    Government’s decision, announced in the Budget, to freeze the rate.
5. An increase in bank lending to revitalise the economy.


Please click here to read the executive summary of the latest Birmingham Quarterly Economic Survey.

Will Rogers is your Policy Manager for the economy and the Quarterly Economic Survey. If you have an issue on this subject you would like to discuss, call 0121 607 1776 or email w.rogers@birminghamchamber.org.uk
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