Trade unions forecast 'grim year' ahead

Date: 31st December 2008

The New Year will bring little joy to British small businesses, according to one trade union organisation.

In its end of year statement, the Trades Union Congress (TUC) predicted that 2009 would be a challenging time for firms, and called on the government for greater support.

In particular, the congress called for new policy in response to rising unemployment and for Westminster to take action ensuring the recession would be as short as possible.

General secretary of the TUC, Brendan Barber, noted: "This is going to be a grim year. Unemployment will increase every month.

"Some predict it will hit three million, but in truth no-one knows."

He added that it was difficult to forecast exactly what the effects of the downturn would be, as the country had "little experience" of recession via a financial sector collapse.

One of the first obstacles firms - such as limited companies - will encounter in 2009 is the deadline for self-assessment tax returns, with all submissions now having to be made online.