BCC says recovery is "fraught with danger"

Another day, and another assessment of the state of health of the British economy.

The British Chambers of Commerce (BCC) says that the economic recovery is "fraught with danger". Its quarterly survey indicates that both manufacturing and services companies are predicting improving turnover and profits, but the overall picture is still negative - businesses still expect things to get worse before they get better.

The BCC said that any signs of Britain emerging from the recession were "fraught with danger" as highlighted by the fragile figures.

Although David Kern, BCC chief economist, is confident Britain will technically come out of recession in the fourth quarter, he is more concerned about next year.

"When the stock cycle finishes and starts to turn towards the middle of next year, the crucial question is whether at that time we get demand sustaining the economy or we fall into a double dip," he said.

The BCC called upon Government to avoid placing additional taxes on business, and recommended scrapping the increase in National Insurance contributions planned for 2011.