Not enough investment in business, says BCC

The new figures on business investment are worse than expected, according to one expert.

David Kern, chief economist at the British Chambers of Commerce, stated that annual falls in business amounted to 24%, and 35% in manufacturing.

In his opinion, this made the threat to the future of Britain's potential growth "very serious".

The only way to survive the problems has been to slash stock capacities, Mr Kern remarked, which cannot be deemed a long term solution to the problem.

He commented that if business does not pick up, the UK will be unable to meet the demand that will follow when the recovery gathers any real momentum.

Continued support is need, the specialist concluded, if a "creditable plan" is to be put in place to nurture public finances.

It was recently announced that a quarter of companies questioned (25%) expect output to rise in the next three months, according to the Confederation of British Industry's monthly Industrial Trends Survey.