Business leaders in the West Midlands say the revised improvement in GDP figures to 0.8 per cent should not divert attention from the real challenges facing UK plc.
Will Rogers, policy adviser at Birmingham Chamber Group, said the region, and the country as a whole, was “not out of the woods yet”, and believes and there is still the threat of a double dip recession.
Mr Rogers said: “The Office for Budget Responsibility has estimated that the public sector spending cuts will result in the loss of 490,000 public sector jobs by 2014/2015.
"In Birmingham the total employment reduction, direct and indirect, is predicted to be 19,880, equivalent to 4.1 per cent of total employment. It is unreasonable for government to expect the private sector to take up this slack unless conditions are created which will encourage businesses to create jobs and wealth.
“The Government must play its part by supporting capital investment. If access to finance continues to hinder the business community, the Government will come under pressure to implement further measures, such as fresh stimulus through quantitative easing that will help grow the economy further.
“Less red tape and cutting down on legislation is what Chamber member businesses are asking for.”