Firms in Coventry and Warwickshire will see slow growth over the next two years but their prospects will improve in the medium term, according to an economic forecast.
The British Chambers of Commerce (BCC) has revised its growth forecast for 2013 from 1.0 per cent to 0.6 per cent and down to 1.7 per cent for 2014 from 1.8 per cent.
The BCC’s economic forecast does, however, predict growth of 2.2 per cent by 2015 and has called upon Chancellor George Osborne to do all he can to improve prospects for growth in his Budget this month.
Louise Bennett, chief executive of the Coventry and Warwickshire Chamber of Commerce, said: “The BCC’s economic forecast is very well-respected and it suggests that growth over the next two years will be slightly slower than first anticipated.
“There are a number of factors that have impacted on the growth figure and there is no doubting that companies in Coventry and Warwickshire want economic growth to begin to speed up.
“The Chancellor must make that his number one priority in his next Budget and, indeed, for the rest of this Parliament.”
The BCC forecast expects business investment to strengthen over the course of the next three years but says the rebalancing of the economy towards exporting is not happening quickly enough.
This is partly down to trade around the globe falling in general.
Manufacturing, says the report, remains strong but is expected to fall by 0.5 per cent in 2013 only to grow by 1.0 per cent in 2014 and then 1.2 per cent in 2015.
The service sector is predicted to grow by 1.1 per cent in 2013, by 2.1 per cent in 2013 and by 2.6 per cent in 2015.
Interest rates, say the BCC report, will remain at 0.5 per cent until the final quarter of 2014 and then will only rise modestly.
John Longworth, director general of the British Chambers of Commerce, said: “Our new forecast highlights the challenges facing the UK economy over the months and years ahead.
“We have advocated reducing the deficit, but have for some considerable time said that this must be coupled with a plan for growth, together creating a new model economy that will allow businesses to create jobs, invest and export.
“Businesses up and down the country tell me they are confident and determined to grow. More must be done to support the ambitions of growing companies, many of whom will be the wealth creators of tomorrow.
“This is why we are calling for decisive action in the Budget. The government must make a serious effort to deliver on the many promises already made.”
A panel, sponsored by Dafferns, of key business people will be combing through George Osborne’s speech at the Chamber on the day of the Budget.
The following morning, a Budget Breakfast – sponsored by Burgis & Bullock – will look back on the key announcements.