GDP down as UK economy faces a double dip
The latest GDP figures released this morning by the Office of National Statistics show a contraction of the UK's economy for the last quarter of 2010 by 0.5%.This is despite forecasters expecting growth of between 0.2%-0.6%. More than three years after the collapse of Lehman Brothers and the demise of Northern Rock could the UK be about to enter the previously much predicted 'double dip' recession?
With many businesses stretched to the limit and relying on a strong Christmas to improve cash flow, the contraction of the ecomony may be one more nail in the recovery's coffin. These figures follow yesterday's story that the much anticipated Small Business Loans Deal, which had been brokered between the coalition government and the UK's biggest banks, has stalled.
Restricted access to borrowing, a poor Christmas trading period, a reduction in public sector spending and an increasingly wary general public, mean that the plight of the UK's small businesses continues to be of great concern. It therefore remains paramount that owners, directors and management continue to monitor their cash flow, maintain communication with lenders and seek professional advice as soon as a problem arises in order to maximise their chances of continuing to trade successfully.