By Marcus Leach
The economy emerged from a double-dip recession today (Thursday) with the news that growth in the three months to September was up by 1%. And whilst this is positive news, the government must build upon it to ensure growth now continues.
Admittedly the figures was boosted by the inclusion of the Olympics and Diamond Jubilee, but even without that data there would have been growth in the economy.
“It’s really encouraging news that growth has snapped back so strongly in the third quarter," John Cridland, CBI Director-General, said.
"Although the Olympics and Jubilee have made up the majority of that growth, these numbers do also seem to point to some acceleration in underlying momentum.
“We expect conditions to remain positive going into the fourth quarter, reflecting some easing of the pressure on household budgets from lower inflation. But the global economic environment remains challenging.”
The Forum of Private Business's Senior Policy Adviser, Alex Jackman, said that whist the mood is positive the government must continue to deregulate to ensure the growth continues into 2013.
“We’ve just come out of a double dip recession, no one wants to see a triple dip materialise, so the Government has to act now — the time for talk is over. The Coalition must slash business red tape: we need to deregulate, deregulate, deregulate to keep this growth momentum going," he said.
“The UK economy must now be tweaked for sustained growth into the months and years ahead, and this must be achieved in part by helping small firms grow and to continue creating more jobs for the private sector.
“This week we have seen the announcement of the Supply Chain Finance Scheme, which whilst a good initiative is in itself an acknowledgement that the banks still aren’t lending. So we also need Government to continue exerting pressure on the lenders to do their job, because only when the banks resume lending to SMEs can the economy truly recover at a decent pace.”
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