Company Formation Sector Expects Long Recovery

There is no doubt that the UK’s economy has benefited from the government’s announcement that the recession is over; recent reports have found that consumer confidence has gone up and so has retail revenue. However, according to a report conducted by the Federation of Small Businesses, our economic recovery may be short lived.

Our recovery has always be somewhat anemic – especially when compared to other countries such as America – however, economists are predicting that the UK GDP growth will be just 2 % each year for the next five years. Subsequently, a ‘double-dip’ recession is now though to be possible.

David Lowery, economic advisor to the FSB, comments; “The UK’s economic future remains unstable and the threat of a double-dip recession is very real. In this context it is vital that the government facilitates business growth. Next months budget should be used as a tool to encourage an enterprise-led recovery. Small businesses must be given priority and planned tax and National Insurance increases, should be suspended, until the economy’s recovery is more stable.”

The fundamental objective of this budget is to direct public money into making sure businesses can drive economic growth.