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Local business leaders have made a call for action from the government as the threat of a double-dip recession appears likely. A combination of high utility bills, rising inflation and reduced spending by consumers has culminated in the lowest level of business confidence for the last two years, according to new data.

The government need to create a strategy which will support and encourage growth of the UK economy, especially as the possibility of a double-dip recession becomes increasingly likely. According to the Federation of Small Businesses, the government needs to act stronger regarding employment law changes, which will act as an incentive for employers to recruit. The business group also believe that the government should “think small”.

The chairman for Warwickshire and Coventry FSB, Ian O’Donnell said:

“The economic and employment news and outlook is not good.”

The latest trades survey from the Confederation of British Industry revealed that December 2011 was the worst experienced by retailers for the last three years. 2011 ended with the news that Past Times and Peacocks facing administration. Ian O’Donnell believes that local councils must act to help retailers on the high street to survive. The call for action by business leaders was prompted by the news that the UK economy had shrunk by 0.2 percent in the last three months of 2011. The national chairman of FSB, John Walker said:

“We need to see these proposals come to fruition so that small firms begin to see action on the ground which really will benefit their business and encourage them to invest and create jobs.”

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