'Tough year ahead' for UK business

News Article - 21 May 2012
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Businesses have been urged to perform a health check this year, following a number of concerns over cash management.

Lloyds TSB reports that just 18 per cent of companies expect stronger business in 2008, compared to 41 per cent in July.

The survey also found that the number of firms reporting a profit, increased orders or further investment all fell.

John Maltby, managing director of the firm's commercial division, commented that businesses will have to "tighten their financial belts" this year.

However he remained confident, claiming: "British firms are well versed in the art of cash management and financial planning and these are skills that should help them weather the storm throughout 2008 and beyond."

The study found that 34 per cent of businesses will attempt to control costs by raising prices, an increase of 11 per cent on July's figures and the highest number in 15 years.

Research by the British Chambers of Commerce found that despite reductions in productivity and investment, there is not expected to be a full-on economic recession.

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