BCC: Big Challenges Facing Economy, Despite End Of Recession
26th January 2010
Commenting on the preliminary GDP figures for the fourth quarter 2009, published today by the ONS, David Frost, Director General of the British Chambers of Commerce, said:
"This is good news, but clearly growth is anaemic, and it certainly means that the economy is far from being out of the woods.
"It is essential that the government demonstrates an unwavering 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."
David Kern, Chief Economist at the BCC, added:
"These figures are disappointing and well below most analysts' expectations. But, for the second quarter in a row, the GDP figures confirm the more realistic assessment signalled in our Quarterly Economic Survey, which clearly indicated that any recovery will face serious obstacles.
"The main aim now must be to ensure that the modest recovery consolidates and slowly gathers momentum. It is critical for both the government and the Monetary Policy Committee to pursue policies that make it possible for business to invest and export. Regulatory burdens must be removed wherever possible, and access to finance improved. A double-dip recession must be avoided at all costs."
For further information please contact the BCC press office on 020 7654 5813 or 07825 746812.
The UK economy grew by 0.1% in the last quarter of 2009.
BCC Annual Conference, 18th March 2010: www.bcc-preparingforchange.co.uk
