Britain is facing the highest risk of a recession since the financial crisis and needs urgent plans to combat the next downturn, according to an alarming assessment of the nation’s economic health.
Preparations need to be made to reduce the impact, the study by the Resolution Foundation thinktank warns. It states that both uncertainty around Brexit and the global economic slowdown have led to the highest recession risk since 2007.
It raises the alarm over the potential impact on living standards, warning that the five previous recessions have produced an economic shock equating to a £2,500 loss for each household in the UK. They have also increased unemployment by one million.
It comes after a series of warnings over the health of the economy amid continuing uncertainty around Britain’s EU membership. Earlier this month the governor of the Bank of England, Mark Carney, warned that there had been a “sea change” in the world’s financial markets, driven by pessimism about the economic outlook.
More than at any other time, with the dreaded B-Word looming and with a new PM in post and uncertainty about future international trading, businesses now need to become more structured, responsive and efficient. This doesn’r just apply to big business either, with their futures tied into public share perception and large contracts overseas; this applies also to SMEs, of which there are many thousands in the UK!
Now is the time to take stock of your business and look at providing a structure for sustainability and growth for the future.
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