Services growth boosts hopes of economic recovery

Hopes for the UK recovery have lifted after official figures showed the powerhouse services sector grew at its fastest rate in nearly nine years in January.

The index of services showed services output rebounded by 1.3% month-on-month in January after plunging 1.1% in snow-hit December, the Office for National Statistics (ONS) said. This was the fastest growth since July 2002.

Economic recovery hopes dashed with bleak levels on household income

Sustained recovery to the economy took another blow after a real household income drops to the lowest for 30 years.

The office for National Statistics reported an overall fall of 0.8% in real household disposable income - this is the lowest since 1977. The announcement of the widest cuts to spending and employment has affected high -street spending. George Osborne said, at the Treasury Committee; "While this budget includes hard measures, we are convinced they are unavoidable in the short term to pave the way for a strong recovery.

One third of Scots firms 'expect rise in turnover'

Almost a third of Scottish firms expect turnover to rise in the next six months, a survey has suggested.

The latest Lloyds TSB Scotland Business Monitor indicated expectations for turnover rose to reach their highest level for three years.

Economic recovery 'is taking longer than we expected', admits Osborne

The recovery will be weaker than expected as Britain struggles out of recession, George Osborne admitted yesterday.

The Office for Budget Responsibility – the Treasury watchdog set up by the Chancellor – said the economy will grow by only 1.7 per cent this year.

That is less than the 2.1 per cent expected in November and 2.3 per cent predicted at the Emergency Budget last June.

Small businesses and young people 'important' to economic recovery

Growth and innovation in small businesses will be crucial to the UK's emergence from the economic downturn, according to Entrepreneurs in Action.

In the expansion, small businesses will almost definitely create graduate vacancies and launch graduate schemes.