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Economic recovery 'underway in the UK'

Economic recovery 'underway in the UK'
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In news which may be welcomed by stock market traders, an expert has claimed that the UK's economic recovery is underway.

According to David Kern, chief economist at the British Chambers of Commerce (BCC), the upturn began during the present half-year.

The government's main aim at the moment, he suggested, is to prevent a relapse.

He added: "We recommended that there should be specific encouragement to banks to lend, to penalise if they hold back money [and for] the Bank of England to encourage lending."

Mr Kern went on to say that the burden of legislation on businesses should be reduced, but currently the priority is to keep the economic stimulus going and not to withdraw it until the economy is in better health.

He made his comments after the release of figures earlier this month by the National Institute of Economic and Social Research, which indicated that output rose by 0.2 per cent for the three months ending in August.
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