The British Chambers of Commerce (BCC) has said the government needs to help UK firms to grow by introducing "radical reforms".
The organisation's Quarterly Economic Survey, released today, says the economic recovery is "fragile" and that growth remains "weak". David Frost, director general of the BCC said he accepted the need for the government to introduce cost-cutting measures, but added more needed to be done to encourage job creation and help businesses export and invest.
The BCC expects Britain's GDP to have grown by 0.3 per cent between April and June, but warned there are worrying signs that global growth may slow, which in turn could well affect progress in the UK. The BCC warned against increasing interest rates prematurely.
Mr Frost said: "Britain's economic recovery is continuing but the pace of growth is too slow, and our economy is out of balance.
"Wealth-creating businesses must be given the right conditions to create growth or there is a real chance that the economic recovery could be thrown off course. The public sector is too large and the private sector is too small. We do not export enough goods and services, meaning we run up continual trade deficits."
