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Analysts call for 'balanced growth'

15/01/14

The head of the Confederation of British Industry (CBI) has called on the government to ensure that Britain's economic growth over the coming years is broad-based, balanced and not built on excessive debt from either businesses or consumers.

John Cridland admitted 2013 has been a relatively positive year but urged firms not to rest on their laurels over the coming 12 months as the UK attempts to stabilise its position following a volatile period of economic recession.

"For the first time since the start of the recession, 2014 will see most firms increasing the size of their workforce, boosting their graduate intake and the number of apprentices they take on," pointed  out Mr Cridland.

Building a recovery on a talented, intelligent and flexible employee base will ensure that the ongoing expansion is not built on sand, he suggested.

However, the CBI chief also called on business leaders to both do a better job when it comes to selling their services abroad and, conversely, to take more steps to reinvest in the British economy when making a profit.

Business funding specialist Bibby Financial Services also urged companies to work towards a broad-based recovery, warning that many small to medium-sized enterprises are too reliant on personal finance.

David Postings, UK chief executive at the organisation, told the Telegraph: "Businesses with unsustainable or limited sources of finance in place will find it challenging in the months and years to come if they cannot take advantage of the gradually improving trading conditions in the UK."

A recent survey commissioned by the financial services provider revealed 20 per cent of firms as saying they relied on their bank overdraft to keep their business going, with the same amount again making use of a temporary loan.

Alternative finance could be one way to extract companies from this unsustainable situation and make it easier for them to get on solid ground, suggested Mr Postings.

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