The Cambridgeshire Chamber of Commerce has welcomed signs of resilience in the UK economy following confirmation of 0.6% growth in the first quarter of 2026, while warning that many businesses across Cambridgeshire and Peterborough continue to face significant operational pressures.
The figures were released alongside this week’s King’s Speech, which included measures aimed at supporting investment, tackling late payments and driving long-term economic growth.
The Chamber said the combination of improving national economic performance and renewed focus on business issues should provide cautious optimism for firms across the region but stressed that headline growth figures tell only part of the story.
According to the Chamber’s latest Quarterly Economic Survey (QES) for Q1 2026, 84% of businesses identified labour costs as a major concern, while 62% reported operating below full capacity. The survey also revealed weakening international trade performance, with 41% of firms reporting declining overseas sales during the quarter.
Charlotte Horobin, Chief Executive of Cambridgeshire Chamber of Commerce, said:
“The latest growth figures demonstrate the resilience and determination of businesses across the UK, including here in Cambridgeshire and Peterborough. Despite ongoing economic pressures, firms have continued to adapt.
“We welcome several of the measures outlined in the King’s Speech, particularly commitments around tackling late payments, supporting infrastructure and creating the conditions needed for long-term growth. These are issues that matter deeply to businesses of all sizes.
“However, headline growth figures tell only part of the story. Our latest Quarterly Economic Survey shows that many firms across our region are still facing significant challenges, particularly around labour costs, recruitment pressures and reduced capacity.
“Businesses now need confidence that policy announcements will translate into practical action. That means meaningful reform, long-term stability and a clear commitment to supporting enterprise across every region of the country.”
The Chamber also highlighted growing concern around business taxation and rates pressures, with 41% of firms nationally identifying business rates as a key concern, the highest level recorded since the British Chambers of Commerce began tracking the measure in 2017.
The organisation said businesses across key regional sectors including advanced manufacturing, life sciences, logistics and agri-tech continue to play a vital role in driving economic growth and innovation but require a stable and supportive environment to maintain momentum.
Charlotte added:
“Cambridgeshire and Peterborough remains one of the UK’s most dynamic regional economies, with businesses that are ambitious, innovative and globally connected. With the right support and a stable policy environment, our region is well placed to help drive the UK’s future growth.”
For more information about Cambridgeshire Chamber of Commerce and the latest Quarterly Economic Survey results, visit the Chamber website.
Take part in the latest survey for Q2 here – https://www.surveymonkey.com/r/SYRMYX5