London companies predict double dip recession

Almost half of London companies expect Britain to experience a double-dip recession, a report has shown.

The gloomy survey, produced by the London Chamber of Commerce and Industry (LCCI) and pollsters ComRes, found that 47pc predicted a second economic dip, while 29pc expected a return to sustained economic growth.
Of the 184 respondents, 51pc said the government could cut the deficit without damaging Britain's economic prospects, which the LCCI said sent a strong message that the business community wants to see spending cuts.
"Businesses in the capital are bracing themselves for a return to recession or at the very best weak economic growth. The government needs to take heed and deal with the UK's public debt to restore confidence in UK markets and keep businesses free from the burden of higher taxes and onerous regulation," said Colin Stanbridge, chief executive of the LCCI.
However, 35pc of London companies said it would not be possible to cut the deficit without damaging the economy, while 14pc said they were unsure. When asked about their own company's prospects, 61pc said they were very likely to survive the recession compared with 50pc a year ago.
However some of the problems noted from the early stages of the downturn persisted, with 60pc still struggling with late payments from customers, and 51pc concerned about the financial security of companies in their supply chain.
Telegraph News 25 Feb 2010