The British Chambers of Commerce (BCC) has downgraded its predictions for growth in the British economy – but maintains the government is doing the right thing with its cut-back programme.
In its latest Quarterly Economic Forecast, the BCC anticipates that Britain’s GDP will rise by 1.3% this year and 2.2% in 2012 – down from its March forecast of 1.4% and 2.3%.
Following up these new predictions, the group warned that, while British firms “are willing and able to drive the recovery” of the economy, they must be supported by the government.
David Frost, director general of the BCC, warned that “the budget was a positive start, but the government has more to do if the private sector is to create new jobs, invest and export and contribute to a lasting economic recovery in the UK.
“New regulatory burdens, business taxes and measures that damage initiative, enterprise, and innovation must be avoided or scrapped – otherwise we risk unemployment increasing by more than the 150,000 figure predicted in our forecast.”
However, the BCC added that the government was “right to persevere with its plans to cut the deficit”, and proclaimed that its fiscal policy will strengthen the UK economy in the longer term.