Recession not over for businesses

Tuesday, February 16, 2010

Factors such as business rates are still taking their toll, research suggests.

By Ashley Brunskill

Around three-quarters of businesses feel that the recession is not yet over for their company, a survey has revealed.

Research by the British Chamber of Commerce found that 74.8 per cent of businesses are still suffering from the economic turbulence of recent times.

It has been widely reported that factors such as business rates have put a strain on some UK companies and there are now fears of a return to recession.

Of those surveyed 55.1 per cent thought it was likely to occur and 20.1 per cent thought it to be very likely.

Michael Baxter, editor of Investment and Business News, said: "The government has to increase taxes. Whichever way you look at it, this must happen. In doing so there is a risk that it could lead to a double dip recession."

He added that the government needs to raise money and, therefore, there seems to be little alternative despite a possible move back into recession being a consequence.

Source: ask-re The Property People LLP