- 21 Sep
Risk of UK Double Dip Recession Increases
I have been reading a variety of things on the web regarding the apparently rising possiblity of a double dip recession in the UK economy.
House prices have fallen again for the third month running, the HMRC appear to be taking an tougher stance regarding VAT time-to-pay agreements (according to an email update recently received) and there is also talk of investors seeking defensive investments in preparation for a double dip recession.
It is impossible to predict if it will happen but at least it is possible to prepare in case it does. Following our emergence from the previous recession I have noticed in the online forums questions posted asking things such as "has the availability of lending to small businesses improved" - which suggests that someone at least believes it may have. The responses seem to have been less enthusiastic, generally clients still seem to feel that there are still challenges in raising finance.
The one thing that is certain is that those challenges are going to get considerably worse if the UK economy does enter a double dip recession, funders will become increasingly cautious. Now is the time to seek the finance, and fix the rates, not once either you (or the funders!) have serious problems.