BCC: 'UK must learn from US approach to economic slowdown'
Mar 25 2008
The British Chambers of Commerce (BCC) warns that the UK must take a more pro-active approach to the current economic slowdown in order to protect small business.
Economic advisor to the BCC David Kern says that the risks facing the global economy are 'acute', and the US is probably already experiencing a recession.
In order to prevent the same happening in the UK, we need to act quickly, because the attitude the UK is taking at present could be 'dangerously complacent', he adds.
British business has been 'remarkably resilient' so far but needs to be protected from the country's 'exposed budgetary position', he says.
The UK has much to learn from the US, who have reacted in a more positive way to the problem, slashing interest rates because 'some of our weaknesses are similar to those of the US', according to Kern.
He advises: 'A UK recession can be avoided but both HM Treasury and the Bank of England must accept that countering the threat to growth is the overriding priority.'
The BCC is a non-profit organisation representing local business interests to government and providing Chambers of Commerce which serve firms around the UK.
According to BBC News, in previous economic crises, early intervention in the markets by banks has been more effective at calming market turmoil than later measures.
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