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Report reveals gloomy mood among businesses

Three-quarters of British businesses do not feel like the recession is over, even though the economy has finally started growing again, a new report has found. A survey carried out by the British Chambers of Commerce (BCC) on behalf of The Sunday Telegraph, found that companies of all sizes were still in recession mode, while firms that employed between 100 and 249 staff were most pessimistic. Overall, of 410 respondents, 74.9% said they did not feel the recession was over. Official figures released last week showed that the UK had just edged out recession in the fourth quarter of 2009 with 0.1% gross domestic product (GDP) growth. David Frost, director general of the BCC, reportedly said: “Despite some growth in the fourth quarter, most businesses feel the recession is far from being over.? “It is essential that the Government demonstrates a real determination to support wealth-creating companies throughout 2010 and beyond,? said Mr Frost. He added that additional business taxes must be avoided, and the 1pc increase to employers’ National Insurance contributions, planned for 2011, should be abolished in order to prevent “a serious risk of plunging back into recession?. Meanwhile, economists said the Bank of England could downgrade growth forecasts in its latest quarterly Inflation Report, which will be published later this week. *Is your company still feeling the effects of the recession, or are you powering ahead with your 2010 expansion plans? Tell us about your business by contacting andrew@bdaily.info.

This was posted in Bdaily's Members' News section by Ruth Mitchell .