Southern Businesses to lead UK recovery

Despite Mervyn King predicting a “choppy recovery” following the latest Quarterly Inflation Report, there are signs that the region’s businesses are in a good position to lead a strong recovery and avoid the feared double-dip recession.

Export business through the Southampton docks and the strength of manufacturing in the region are promising signs, as are the most recent Office of National Statistics figures which showed that Southampton had the biggest drop in youth unemployment in the UK. King warns that it will take several years for the economy to return “back to anything we can remotely call normal”, but the new Head of Business Restructuring at BDO LLP in Southampton, David Smithson, claims that with careful management, businesses can weather the storm: “It’s all about reading the warning signs, and taking swift action to remedy any potential problems. We’d encourage people to get advice as soon as they have any concerns, as there are many different ways to navigate issues and manage the current financial situation. Having a problem doesn’t have to mean that a business has to fail if you tackle it soon enough. We’re keen to play our part in maintaining a strong economy in this region by providing advice and strong management support.” Another recent report from Oxford Economics and the National Endowment for Science, Technology and the Arts (NESTA) also suggested that the economy cannot be rebuilt on manufacturing alone and highlighted the technology sector as an area which could deliver further growth to the economy. With initiatives such as Digital Southampton gaining momentum and a significant number of technology companies well established in the region, it looks as if the South - if it plays the careful skipper - will make plain sailing of Mervyn King’s choppy waters. - Ends – Words: 293

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