The Office for National Statistics has revised its figures for the UK economy, showing it contracted by 0.5% in the last quarter, not by 0.7% as was previously announced.
What does this mean for UK businesses? Joe Grice from the ONS said the revised figure did not change the overall picture for the UK economy, which has been described as ‘broadly flat over the past two years’. He added that output in the construction sector was higher than estimated, as was the production sector. It effectively means things don’t look quite as bad as previously announced, but the contraction still demonstrates that businesses are struggling.
It is hoped that the recent boom in consumer confidence caused by the Olympic Games will improve growth levels. But will this be enough to take the country out of recession? One Labour politician has called for a temporary cut in VAT to help consumers and a tax on banker’s bonuses.
What would you like the Government to do to help businesses during this double dip recession?
By commercial litigation solicitor and associate, Nicola Whittle
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