UK growth remains too slow, says BCC

Tuesday 3 July 2012

Business

Economic growth remains too weak in the UK, according to the British Chambers of Commerce (BCC).

In its latest Quarterly Economic Survey, the organisation found that the pace of business growth remains sluggish and inadequate for a sustainable recovery.

While many of the balances are in positive territory suggesting growth, they are still below levels seen before the recession in 2007, the BCC stated.

However, the survey also shows that there has been a surprisingly good improvement in exporting activity, suggesting that businesses are looking to exporting as a source of growth.

John Longworth, director general of the BCC, said that while domestic growth continues to bump along the bottom, the silver lining is an increase in firms looking to trade overseas.

"Economic growth should be the government’s main priority. As the eurozone crisis rumbles on, businesses are feeling the effects, and so growth is still weak," he stated.

"Growth cannot wait. The government must take an imaginative and brave approach to stimulating the economy and helping businesses thrive."

Mr Longworth said that headline grabbing u-turns on fuel duty are not enough to get the economy back on track.

Instead there needs to be "a relentless determination" to deliver Whitehall policies on the ground, he claimed.

“The creation of a business bank, for example, would ensure that new and growing companies can access the finance they need to invest in new products and services, export to new markets, and take on more staff," he stated.

"Other measures such as renewed infrastructure investment could help insulate the UK from some of the risks in the eurozone."

Mr Longworth argued that creating robust rail, air, maritime, energy and digital networks will rely on new creative ways of attracting private finance.

"These projects could be privately funded or kick-started by the public sector, with pension funds and sovereign wealth funds able to purchase the assets when the projects are completed," he added.

Posted by Dan Smith