The economy

The UK economy has begun the journey towards recovery but still faces many risks, the British Chambers of Commerce (BCC) has said.

Bank lending to businesses fell by £8.4 billion in July, new figures have revealed.

Average pay increases offered by UK firms have dipped to just 1 per cent, the lowest figure since records began.

Internet shopping recorded a 15.7 per cent rise in July compared with the previous month, a new survey has revealed.

A surge in confidence among business professionals could suggest that UK is about to emerge from the recession.

There seems no prospect that the cut in VAT will be extended beyond the planned end of the year reversion to the old rate after it was revealed that tax revenues have fallen sharply.

The minutes of the Bank of England’s Monetary Policy Committee (MPC) meeting this month suggest that more money may yet be flooded into the economy in an effort to beat off the threat of deflation.

The Chancellor has been urged to drop VAT on energy efficient domestic appliances in a scheme that would mirror the car scrappage programme.

The government has been urged to scrap plans to increase National Insurance payments in response to rising unemployment figures.

Jobs continue to be at risk during the economic downturn, with a significant proportion of employers contemplating redundancies over the next six months.