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The British Chambers of Commerce (BCC) says there have been improvements in many areas of the British economy, most strikingly in manufacturing.

Its economic survey for the fourth quarter of 2009 says the UK economy appears to be on the brink of leaving recession.

But it warned that, despite exports in the service sector strengthening, the industry was still struggling.

And it warns there needs to be easier access to capital for businesses.

The BRC says UK productivity could be hit if sharp falls in business capital spending are not reversed.

It also says the 1% increase to employers' National Insurance Contributions planned for 2011 should be scrapped.