'Fragile' growth expected in 2010

21/12/2009

The UK economy is expected to grow gradually in the coming year, with unemployment continuing to creep upward.

That's the finding of the CBI, who believe that the UK came out of recession in the fourth quarter of 2009 – boosted by consumers rushing to spend before January's rise in VAT.

Despite this, they predict that 2010 will bring further financial woe for British households.

Many staff should expect another cycle of pay freezes, the report says, while unemployment will continue to rise until the autumn.

It means that, despite more positive news on the horizon, 2010 could be a difficult one for those struggling with money problems.

Kevin Still, director at Eurodebt, said: "A key issue for many homeowners in 2010 will be whether interest rates remain low and whether the housing market improves.

"Increasing household costs, flat pay and lower disposable income mean that many people struggling with their finances will continue to have debt worries."

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