According to the forecast of the British Chambers of Commerce, the economic growth rate of the country will come out to be 2.1pc in the next year, which is lesser than that of 2009.

However, the economy is reported to be growing consistently in 2010.

"The UK's economic prospects remain uncertain, our recovery is fragile and risks of a relapse are high. Threats of a double-dip recession are greater in the near future than the dangers of higher inflation", said David Kern, Chief Economist at the BCC.

The group has also indicated a sloth in the first quarter recovery of the economy, due to unfavorable weather conditions and disturbances, and increase in VAT.

"However, these factors are temporary and longer-term growth prospects remain weak. The need to significantly cut the UK's huge budget deficit, strengthen the enfeebled banks, and reduce personal debt will inevitably limit growth in the next few years", said Kern.

BCC has also recommended the Government to do away with the 1% surge in national insurance contributions, which is supposed to be implemented from April 2011.

It also advised the Government to increase the VAT to 18.5% to compensate for the already lost revenues.