Businesses Will Need Help to Offset Economic Gloom
19th March 2018.
Economic growth in the UK will remain at the bottom of the G7 group of advanced countries until at least the end of the decade, the British Chambers of Commerce has warned.
Despite reports that stronger-than-expected growth could inspire an interest-rate hike, the UK is still struggling to keep up the pace with rival economies. According to recent reports from the British Chamber of Commerce (BCC), the outlook for the economy is looking good but is still lagging behind its competitors. Of course, the BCC has held an extremely pessimistic view of the economy post-Brexit, but it still speaks volumes in terms of the future for many business sectors. The business organisation urges the government to “fix the fundamentals”, and reform the economy through attention to skill shortages, road and rail investment and business rates.
In order to help the economy, businesses must help themselves. In order to bypass possible financial distress caused by business rates or inflationary pressure, businesses should free up their cash flow. Attention to cash flow could also open up various expansion opportunities, from new technology to a larger workforce, as well as help boost productivity and profit margins. At the Credit Protection Association, it is our job to put our business members back on the street better than they were before. Our debt recovery services give them a bit of extra cash, while our credit management products ensure that cash is safely protected.
The British Chamber of Commerce believes this doldrum will be eased by government involvement, where attention could be directed at increasing productivity and stimulating growth.
Adam Marshall, director-general, said: “A concerted effort to get the basics right on connectivity, infrastructure, training, immigration, procurement and business costs would give rise to a wave of investment and significant productivity improvements. The power to kick-start the UK economy, and raise the trend rate of growth above the current sluggish levels, lies in Westminster, not in Brussels — and businesses will respond to action by delivering investment, higher productivity and the increased wages we all want to see.”
Despite strong global trade and the price advantage provided by sterling’s 15 percent devaluation since the referendum was called in 2015, Britain is lagging behind rivals on exports.
With a transition agreement expected before the end of the month, the BCC and BDO each called for greater clarity on Brexit negotiations.
Mr Marshall said: “While many individual businesses are doing well, the UK economy should be performing better than it is. Although strong global conditions have given the UK a boost through higher export demand, we have serious concerns about the potential for further growth when the performance of key trading partners slows.”
Th economy is growing; albeit at a slowing pace to its rivals. Unfortunately, keeping up with the competition is essential if we are to reach the other side of Brexit uncertainty. It is up to our businesses to maintain our competitive edge, keeping our employees skilled and competent, our workplaces productive, and our startups innovative. Small businesses are the lifeblood of the economy, mainly because of their role in driving growth. The economic growth of the UK can only be encouraged through innovation, technology and keeping up profits, but businesses cannot do it alone.
Small businesses, in particular, have experienced a significant funding gap, where many no longer trust high street banks to fuel their aspirations. While new funding platforms exist, from crowdsourcing to peer-to-peer borrowing, these can damage cash flow in the process. Credit management companies like the Credit Protection Association do something different, where our debt recovery services free up extra cash for new ventures, our credit checking facilities and credit reports improve our customers’ financial standing and future prospects.
The Credit Protection Association is a credit management company established in 1914. If you supply goods or services on credit then we can help you!
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