UK avoids double dip recession, says BCC

Date: 7th April 2010

Economic growth in the first quarter of 2010 means the UK has avoided a double dip recession, according to new figures from the British Chambers of Commerce (BCC).

However, despite a continuation of the country's economic upturn, the recovery in the UK is still "weak", the organisation claimed.

According to the BCC, a serious risk of economic setbacks remains, despite business confidence moving "firmly into positive territory".

David Frost, the organisation's director general, said: "Businesses are showing resilience despite difficult and uncertain trading conditions. Confidence is building, and the government must nurture this with well-thought out policies that support business growth and job creation."

The BCC called on the next government to avoid additional business taxes, which it said would "stifle" the UK's recovery after it was confirmed yesterday (April 6th) that a general election will be held on May 6th.

David Kern, chief economist at the BCC, added: "Whatever the outcome of the election, a new Government must produce a more credible medium-term plan for cutting the country's huge Budget deficit and reducing spending."