Starting a new business? Get 40% off our accountancy services for 3 months! 😀

x

According to one of the biggest investors on the stock market, there may a lack of incentive for UK companies to invest in 2012, which may lead to a further recession. Legal & General Investment Management has warned that growth targets are likely to be missed by the UK, resulting in recession, stagnant incomes and rising unemployment. LGIM manages £347bn in assets and has predicted GDP to fall to 0.4 percent in 2012, and 0.5 percent in 2013.

The situation is further compounded by UK businesses being reluctant to spend money, although many have stabilised in 2011. Although the UK corporate sector is reasonably healthy, the companies look at the outlook for demand, with no incentive to invest. Economist at LGIM, Tim Drayson said:

“They’re the only sector that have the cash to generate the effective growth. You need the corporate sector to borrow and invest. It’s hard to see the consumer doing much.”

Drayson predicts that job losses won’t be aggressive, as many businesses streamlined their workforce during the last recession. The Office for Budget Responsibility has cut its previous forecast for growth to 0.7 percent during 2012, with a huge rise to 2.1 percent in 2013. However, according to LGIM, the forecast is much too optimistic as Europe is the main trading partner for the UK, and as long as the EU is struggling the crisis will continue.

LGIM state that incomes have only recovered to a stagnant position, which means that consumer spending is unlikely to increase during 2012.

guest
0 Comments
Inline Feedbacks
View all comments

Read more posts...

Architects and Tax

Architecture is a highly diverse sector when it comes to tax. It’s partly down to the type of businesses that carry out…

Read More

June 2022 Client of the Month: Manea Kella

This month we spoke to Adrian Manea, architect and director at Manea Kella, a London based RIBA Chartered architecture and interior design…

Read More

Succession Planning for Business Owners: What Comes Next?

When you own a business, it’s extremely normal to feel like you’re surviving one day to the next – ‘winging it’, as…

Read More
Back to Blog...

Confirm Transactions

The number of monthly transactions you have entered based on your turnover seem high. A transaction is one bookkeeping entry such as a sale, purchase, payment or receipt. Are you sure this is correct?

Yes, submit my quote
No, let me change it

Please contact our sales team if you’re unsure

VAT Returns

It is unlikely you will need this service, unless you are voluntarily registered for VAT.

Are you sure this is correct?

Yes, the business is VAT registered
No, let me change it

Call us on 020 3355 4047 if you’re not sure.

Bookkeeping

You only need this service if you want us to complete the bookkeeping on your behalf.

Would you prefer to complete your own bookkeeping?

Yes
No

Call us on 020 3355 4047 if you’re not sure.