BCC UK economic recovery 8216 not secure 8217

The economic recovery in the UK cannot yet be described as secure, according to a new report released by the British Chambers of Commerce (BCC).

It stated that personal debt levels were "too high" and as the recovery is being built on consumer spending, it could slow down in the coming months and years.

The UK has had a slow recovery from the recession caused by the global financial crash, but chancellor George Osborne believes the corner has been turned and a brighter future is on the cards for the country after a rough few years.

But critics such as the Labour Party have chosen to focus on what opposition leader Ed Miliband has termed the cost of living crisis, with him pointing out wages are not rising as fast as the price of goods and services.

Future challenges

Chief economist at the BCC David Kern explained there are still a number of challenges being faced by the UK economy, despite the fact BCC research has indicated that the manufacturing sector is growing consistently and UK export orders and sales in services are at all-time highs.

"UK growth is still reliant on consumer spending, driven by a resurgent housing market and a declining savings ratio," he said, adding: "Investment and exports must play a larger contribution to our economic future, or else there is a risk that our recovery could stall."

John Longworth, director general at the BCC, also pointed out that the UK's broken business finance system is still in need of repair. Speaking to BBC News, he said: "Certainly, all the indicators are stellar. Things are really looking up on exports. Nevertheless, the UK must "continue to increase the amount of export support we have."

Mr Osborne announced on Monday (April 7th) further measures to help boost British exporters, revealing that £6 million is going to be invested by the government to boost the number of trade advisers to medium-sized firms. The chancellor claimed that this would make it much less risky for banks to lend to exporting firms.

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