The Bank of England has cut its growth forecast from the 0.8% predicted in May as businesses struggle to battle against the double dip recession. The bank has published its latest quarterly report and it has shown worse than expected performance for the UK economy. Dan Wagner, CEO of mPowa, who has been campaigning for better support for SMEs which make up over 99% of the private sector, said, “There still isn’t enough to stimulate investment and growth in the UK economy and as companies struggle to deal with increasing pressure caused by falling demand, this news will only confirm what they are experiencing. We welcome measures recently announced such as the Funding for Lending initiative but more support needs to be seen on the ground to help businesses return to peak performance.
“A major challenge for businesses continues to be cashflow and many are seeing a domino effect whereby one supplier faces funding difficulties, which then has a negative effect on other parts of the supply chain. Small firms are finding it particularly difficult because they don’t have the resources to absorb these setbacks. Small firms need continued support to access funding and resources to speed up their cashflow. Only then can they look forward to much healthier order books and ultimately, more optimistic assessments of the economy in the UK.”