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| BCC says UK's economic recovery is 'not yet secure' | BCC says UK's economic recovery is 'not yet secure' |
| (about 9 hours later) | |
| The UK's recent economic growth might be short term and recovery is "not yet secure", the British Chambers of Commerce (BCC) has said. | The UK's recent economic growth might be short term and recovery is "not yet secure", the British Chambers of Commerce (BCC) has said. |
| Chief economist at the BCC David Kern said the recovery could stall as it relied on consumer spending, and personal debt levels were "too high". | Chief economist at the BCC David Kern said the recovery could stall as it relied on consumer spending, and personal debt levels were "too high". |
| His comments accompanied the BCC's economic survey for the first quarter. | His comments accompanied the BCC's economic survey for the first quarter. |
| It found that UK export orders and sales in services were at all-time highs. | It found that UK export orders and sales in services were at all-time highs. |
| It also said manufacturing was growing consistently. | It also said manufacturing was growing consistently. |
| But Mr Kern said "challenges persisted" despite the progress. | But Mr Kern said "challenges persisted" despite the progress. |
| 'Broken' finance system | |
| "UK growth is still reliant on consumer spending, driven by a resurgent housing market and a declining savings ratio," he said. | "UK growth is still reliant on consumer spending, driven by a resurgent housing market and a declining savings ratio," he said. |
| Mr Kern said personal debt levels "needed to fall" and that it would be hard to maintain growth in the medium term without "significant structural changes to our economy". | Mr Kern said personal debt levels "needed to fall" and that it would be hard to maintain growth in the medium term without "significant structural changes to our economy". |
| Britain's current account deficit was the "largest in the G7" group of major industrialised nations, and would pose "long-term risks" if left unchecked, he said. | Britain's current account deficit was the "largest in the G7" group of major industrialised nations, and would pose "long-term risks" if left unchecked, he said. |
| "Investment and exports must play a larger contribution to our economic future, or else there is a risk that our recovery could stall," he said. | "Investment and exports must play a larger contribution to our economic future, or else there is a risk that our recovery could stall," he said. |
| John Longworth, director general at the BCC, said: "Only by repairing our broken business finance system will viable, growing firms gain access to the capital that will allow them to invest in their staff and machinery, and enter new markets." | John Longworth, director general at the BCC, said: "Only by repairing our broken business finance system will viable, growing firms gain access to the capital that will allow them to invest in their staff and machinery, and enter new markets." |
| The industry body's latest report showed an improvement in export orders over the past two years, Mr Longworth said. | |
| "Certainly, all the indicators are stellar," he told the BBC. "Things are really looking up on exports." | |
| Nevertheless, the UK must "continue to increase the amount of export support we have," he added. | |
| Export measures | Export measures |
| On Monday, Chancellor George Osborne announced further measures to help boost British exporters. | On Monday, Chancellor George Osborne announced further measures to help boost British exporters. |
| In a speech to business leaders in Rio de Janeiro, he said £6m would be invested in boosting the number of trade advisers to medium-sized firms. | In a speech to business leaders in Rio de Janeiro, he said £6m would be invested in boosting the number of trade advisers to medium-sized firms. |
| He also said banks that lent to exporters under the UK Export Finance scheme would be able to take those loans to the Bank of England to raise additional finance. | He also said banks that lent to exporters under the UK Export Finance scheme would be able to take those loans to the Bank of England to raise additional finance. |
| Mr Osborne said that measure would make it much less risky for banks to lend to exporting firms. | Mr Osborne said that measure would make it much less risky for banks to lend to exporting firms. |