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Impending cuts ''cast a long shadow'' over UK economy
Over 80 per cent of UK businesses polled in a recent survey reported the current economic climate poses* more difficulty than the recession, reports Trading Charts.The report by Berkshire Consultancy indicates that the majority of respondents were attempting to achieve expanded growth while simultaneously cutting costs.
Account director for the firm Sarah Hunter said that continued uncertainty was leading to a "crisis of confidence" among UK firms.
"Despite official figures revealing faster paced growth during the second quarter, impending public sector cuts and a scheduled VAT rise cast a long shadow over a fragile market," she said.
Her comments echo the findings of the Institute of Chartered Accountants in England and Wales' latest business confidence report, which indicated that many firms acknowledged that further challenges would come before recovery.
However, the report also noted that over half of the respondents say it is difficult to make forecasts for performance, given the current economic climate.
By Paul Simon
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