economic downturn

Recession Arrow

Recession to be worse than 90s slump

The current recession is expected to be worse than the economic slump of the 1990s, the British Chambers of Commerce (BCC) has warned. The BCC’s quarterly economic survey has predicted that UK GDP is expected to decline by 2.9% between the third quarter of 2008 and the third quarter of 2009. This would be greater than the 2.5% drop between 1992 and 1993. The survey also forecast that the UK economy would contract by 2.2% in 2009 — worse than the 1.6% negative growth it predicted last November. BCC director general David Frost said: “Some of the strain can be avoided, but only if the Government can address the two key problems of confidence and cashflow. We must avoid losing viable companies during this downturn.” “It will be business that drives the UK out of ... »

Health and Safety

Firms urged to have New Year health check

Business Link has urged business owners to get their firms in shape for 2009 by taking advantage of its free online business health–check service. The organisation promises a quick ‘MOT’ where firms can use Business Link’s interactive, online questionnaire to check they are maximising their cashflow, marketing and business planning tools. A more detailed health check is also available, where firms can opt for a free on–site visit from a Business Link adviser, who will look at company processes such as financial procedures. Businesses can also request a tailor–made action plan to help them cope with the effects of the economic downturn, and a follow–up monitoring service is available, to make sure firms are on the right track. Business Link adviser ... »

Planning in an Economic Downturn

As concerns over the UK economy continue to grow, it is essential that all businesses, particularly small and medium-sized enterprises, are property prepared for financially-testing times. Sound business and financial planning is always important, but especially so in an economic downturn. The following steps can help you and your firm weather the ‘credit-crunch’ storm; but remember, there is no substitute for one-to one professional advice, so contact your accountant to give your business the best possible chance of success. Debt Management This is essential in an economic slowdown -you will soon encounter difficulties if you allow outstanding debts to accumulate, a problem which is all the more likely in lean times. Make sure you have a clear policy for collecting debts and t... »

North

Northern SMEs Beat the Downturn

Fewer small firms in the north of Britain are being affected by the economic slowdown than in the south. Research from Bacs revealed that just 55% of SMEs in the north of Britain say they have been affected by the economic downturn, compared with 59% in the Midlands and 64% in the south. Commenting on the research, British Chambers of Commerce (BCC) economic adviser David Kern, said: “There are two reasons for the relatively better performance in the north. The housing downturn has hit the south harder, and the export sector has done better than the domestic economy. More northern companies are involved in the export sector, while businesses in the south tend towards services.” “However, you can’t argue that the north is booming and the south is in the doldrums. But... »

Government to Blame For Economic Downturn

Firms blame Government for Downturn

The overwhelming majority of SMEs feel the Government is to blame for the economic downturn, according to mutual association for lawyers and chartered accountants UK200 Group. The UK200 Group survey of 200 small businesses across the legal, retail and manufacturing sectors revealed that 90% felt that the Government was responsible for the economic downturn. A high number (85%) also blamed the banking industry, while 73% pointed the finger at the world economy and its contribution to the UK slowdown. UK200 Group president David Ingall said; “It is interesting to note that small firms are very clear about who they hold responsible for the current difficulties, although the media must take some responsibility for constantly headlining bad news,” The research also highlighted that ... »