The outlook is very bleak for businesses says Rob

Last updated 11:47, Friday, 29 August 2008

Rob Johnston

UNEMPLOYMENT will break the two million barrier in the next two years as the UK’s economy shudders to a halt.

That’s the bleak prediction of Cumbria Chamber of Commerce and Industry chief Rob Johnston.

Commenting on a gloomy economic forecast by the British Chambers of Commerce – released this week – Mr Johnston said an interventionist economic policy was now required to ward off the worst of the impending slowdown.

The report claims British businesses are facing two “very difficult” years, with a technical recession possible and unemployment likely to increase.

Mr Johnston has joined growing calls from business to cut interest rates in response.

He added: “While a marked slowdown in activity is likely over the next 18 months, even if interest rates are cut, the correct policy decisions are still needed to ward off the threat of a serious and prolonged recession.”