7th October 2008
Britain is in the throes of a recession which could see around 350,000 jobs go in the next 18 months, according to the British Chambers of Commerce (BCC).
The latest quarterly survey of 5,000 businesses by the BCC shows confidence has plummeted across the manufacturing and service industries, with all firm sizes in both sectors showing negative domestic balances in the third quarter of 2008.
The results of the survey are "exceptionally bad" according to the BCC, which says that the domestic economy is under "immense pressure" for the second quarter in a row.
The BCC has called for a half-point cut in interest rates at the Thursday meeting of the Bank of England's Monetary Policy Committee.
Speaking on BBC TV, the BCC's director-general David Frost called for strong leadership and said that decisive action taken now could mean only a mild, shallow recession.
He said: "As confidence goes, what that means is that business doesn't invest.
"And as cash flow becomes tight in many cases companies have no option but to let people go."
"This is a huge global financial maelstrom we are in now, but what business needs to see from the Government is that it understands - and I think some of the changes in government show that - but also that it is prepared to take decisive action."
IMAGEPA
'Economy in recession' says BCC
The latest quarterly survey of 5,000 businesses by the BCC shows confidence has plummeted across the manufacturing and service industries, with all firm sizes in both sectors showing negative domestic balances in the third quarter of 2008.
The results of the survey are "exceptionally bad" according to the BCC, which says that the domestic economy is under "immense pressure" for the second quarter in a row.
The BCC has called for a half-point cut in interest rates at the Thursday meeting of the Bank of England's Monetary Policy Committee.
Speaking on BBC TV, the BCC's director-general David Frost called for strong leadership and said that decisive action taken now could mean only a mild, shallow recession.
He said: "As confidence goes, what that means is that business doesn't invest.
"And as cash flow becomes tight in many cases companies have no option but to let people go."
"This is a huge global financial maelstrom we are in now, but what business needs to see from the Government is that it understands - and I think some of the changes in government show that - but also that it is prepared to take decisive action."
IMAGEPA
Tags: Regulations
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