The CBI has warned that 2010 is unlikely to represent a change in the fortunes of the UK economy. It predicts that 2010 will see more job cuts, pay freezes and other devices used by businesses to cut costs and restructure.
Whilst it is likely that the economy will return to growth, without a major force or sector driving growth, it is likely to be years before we see any real change in fortunes. The restriction of credit is still a large problem for many small and medium sized businesses and that is unlikely to change in the next 6 months.
I am personally concerned that the removal of the various economic supports put in place over the past 18 months will stunt growth. I am also concerned that tax rises are coming to reduce our enormous budget deficit (where has it all gone Gordon and will there be an inquiry into Government profligacy when this is all over?) and that will dent consumer spending and severely restrict any growth in the retail sector. The increase in employer NI contributions could see similar restrictions in spending in the corporate sector.
Bah, humbug.
The European commission has said parts of UK law, specifically provisions on sexual orientation and disability, are inadequate and could refer the situation to the European court of justice.
The claim was set out in opinions sent to the government and includes a warning that the law that applies to faith-based organisations, schools and adoption agencies allows too much scope for discrimination on grounds of sexual orientation. In addition the EU’s equal opportunities commissioner highlighted the lack of a ban on “instructions to discriminate”, where a person is discriminated against because of the actions of a third party, and the lack of clear provisions for class actions.
Last month, the equality bill was included in the Queen’s speech for a second year and was presumed to be compliant with EU requirements. This means the UK is the only European country to have failed to implement two key EU directives on discrimination. The government has two months to respond.
It has today been warned that professional firms face a fight for survival in 2010 as government spending is cut to reduce debts.
According to The Centre for Economics and Business Research (CEBR) the worst hit area will be research and development however worryingly for us in the legal profession, lawyers and property agents are said to be next in line!
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