Chamber responds to ONS Data on Trade
The final trade data for 2024 shows the UK’s export performance is continuing to operate at two different speeds.
Exports of services remain robust and are generating solid growth across European and wider global markets, but our performance in manufactured goods is lagging substantially behind, year after year. In 2025, it is vital that we continue to make the most of our competitive advantage in services, but more must be done to bolster exports of goods.
The key to this will be a bold and ambitious Trade Strategy. It must expand UK services across global markets while mitigating the effects of new tariff or trade barriers on goods and supply chains.
The reset of UK-EU trade relations could also remove costs and red tape which are holding back exports for businesses.
If this is coupled with effective implementation of new UK trade agreements, such as our membership of the Pacific trade bloc, then there will be new opportunities for firms.
But we also need to see better export support wrapped around SMEs to meet their ambitions to invest and grow.
UK Trade Data In 2024
There was a 3.4% rise in UK service exports across the year while imports were up by 3.3%. However, trade in goods continued to decline, with a 5.1% fall in exports values, with imports down by 0.5%.
Over the final quarter of 2024, UK trade performance in goods was weak with a 5% drop in export volumes to the EU and a 5.2% fall in export volumes to the rest of the world. Services fared somewhat better, with a 1.2% rise in export volumes.
In the final month of 2024, UK goods export volumes rose very slightly by 0.3% (£0.1bn). This was thanks to a 3.3% rise in exports to the rest of the world which was offset by a 3.9% fall in sales to the EU.
Goods imports fell by 3% in volume terms in December, with a 3.5% fall in EU goods offset by a 2.5% rise in deliveries from the rest of the world.
UK goods exports to the US rose by 10.7% in December. This was likely an early signal of stockpiling in supply chains, in anticipation of potential US tariffs by the incoming Administration. The picture in services trade in the final month of 2024 was of an estimated 1.5% rise in imports into the UK and a growth in services exports of 1.2%.
Economy Sees Growth, But Uncertainty Lingers
In response to the latest GDP figures released by the ONS this morning, Nick Hyde, Policy Manager at the North & Western Lancashire Chamber of Commerce stated:
“While it’s a slight relief to see that the economy grew marginally in Q4, businesses are still grappling with significant uncertainty during these challenging times.
“Our research indicates that the Autumn budget has introduced a difficult array of cost pressures for businesses to navigate. Increases in national insurance and the minimum wage are forcing companies to make tough choices just to stay afloat. Moreover, upcoming changes to employment rights legislation are adding to the financial strain and concerns for many firms.
“To foster stronger long-term growth in the UK, it is essential to enhance business investment. Our immediate recommendations for the government are straightforward: expedite reforms to business rates, approve more infrastructure projects, and bolster exports. Businesses need support to help the UK thrive, work, and trade effectively.”
