The British Chamber of Commerce has released the results of its Q4 2009 Economic Survey which shows that while improvements are continuing, growth was slower than in the third quarter of 2009. The evidence gathered would suggest that the country is starting to come out of recession but it is still a slow process.
BCC Director General, David Frost, stated: “Although these results are not as impressive as hoped, they do contain some positive features – most notably strong improvements in employment and exports within the manufacturing sector. Businesses are showing resilience despite difficult and uncertain trading conditions. Confidence is improving, and the boost in exports must be nurtured in order to strengthen Britain’s trade position globally, and to help rebalance the economy away from an over-reliance on the public sector.
He continued: “It is vital that the government now demonstrates a determination to support wealth-creating companies in 2010. Additional business taxes must be avoided, and the 1% increase to employers’ National Insurance Contributions planned for 2011 should be scrapped. Unless the private sector is given the freedom to create jobs and wealth, the UK’s economic recovery will be slower than it should be, and we will face the serious risk of a double-dip recession.”
The BCC’s Chief Economist, David Kern, warned that this recovery will only happen if the government helps out and “strengthen Britain’s AAA credit rating by urgently producing a more credible medium-term plan for cutting the country’s huge budget deficit, and restraining public spending.”