The British Chambers of Commerce (BCC) has predicted that the UK economy will exceed its pre-recession peak in the second quarter of this year, two years ahead of previous estimates.
The BCC has upgraded its forecasts for growth to 2.8 per cent this year and 2.5 per cent next year, from previous projections of 2.7 per cent and 2.4 per cent respectively.
A spokesman for the lobbying group said that its “sunny predictions” for growth reflect the drive and ambition of firms across the UK that are expanding and creating jobs.
However, while the BCC is confident that we will be enjoying pre-2008 growth levels by the end of June, it also warned that major issues remain, such as the unacceptably high level of youth unemployment.
The group is therefore calling on the Chancellor to use this month’s Budget wisely by incentivising businesses to hire young people. It also wants to see more business investment and better access to finance for firms.
Separately, a spokesman for prestigious business survey provider Markit said that the UK’s growth surge shows no sign of abating, with business intentions for the year ahead not only the highest seen over the past five years but also higher than any other major developed country.
Meanwhile, confidence among the UK’s small business is returning, with more businesses planning to hire new staff in the next three months, a new survey has said.
The Federation of Small Businesses’ (FSB) latest Small Business Index shows that 15 per cent of companies want to take on more staff in the next three months and that 11 per cent raised staff numbers in the previous quarter. Job increases were seen in all the English regions, but the most were seen in the West Midlands and the east of England.