Corin Crane, chief executive of the Coventry and Warwickshire Chamber of Commerce, said: “The economy has been fairly stagnant over many years so we know that strong, sustained growth is not going to happen overnight.

“However, it is pleasing to see two consistent quarters of growth that have defied some expectations.

“What happens next is vital. We’ve got long-term plans at a national level and a regional level that set out the direction of travel for the economy and, again, we welcome those.

“But firms are also looking ahead to the Budget in the autumn and will be hoping the Government doesn’t repeat last year’s surprise tax increase on business.

“Further cost increases would be difficult – in fact impossible for some – to swallow so if we want to see businesses investing and growing, they have to be given the breathing room to do so.”

Stuart Morrison, Research Manager at the British Chambers of Commerce said: “Better than expected data for both Q2 and the month of June are welcome – but the numbers mask the underlying pain being felt by businesses across the UK.

“Without thriving firms the economy will continue to struggle. We saw better than expected growth at the start of the year, largely because of stockpiling ahead of US tariffs. However, tax burdens at home, alongside uncertain global trading conditions, created a very challenging environment for the UK’s SMEs in Q2. The impact of April’s national insurance hike is now clear, with our latest survey showing investment and recruitment hit. 

“Long-term strategic plans from Government on industry, infrastructure and trade have been widely welcomed by businesses. But with the focus now on delivery, persistent cost pressures mean firms are left with one hand tied behind their back. 

“There must be no more business taxes in the Autumn budget. Our recently published Blueprint for Growth document offers Government practical ways forward, to help businesses invest, recruit and trade.”