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Page last updated at 15:25 GMT, Tuesday, 8 July 2008 16:25 UK
Recession fears: Case study
By Dan Whitworth
Newsbeat reporter

There's been the strongest warning yet that a recession could be on the way and the British Chambers of Commerce says the UK economy could shrink if urgent action isn't taken. Newsbeat caught up with a listener to find out how it could affect him.

Jason Miller
Jason has seen sales fall dramatically at his car business

Jason Miller's a second hand car salesman in Stanington, Northumberland.

He said: "This time last year I was selling 40-50 cars every week. Last week we only sold 13".

He has about 35-40 cars in stock at any one time. He has anything from Peugeots, to Volvos, Minis and Fords. But he's finding it harder than ever to shift them.

"This time last year we would have sold this VW Golf, no problem at all, for 8000. Now if I'm lucky I'll be able to get rid of it for nearer 7000."

The British Chambers of Commerce spoke to 5,000 firms.

Many said sales and orders have slowed recently and some have serious cash flow problems.

So the BCC say a recession could start in three months.

And Jason agrees.

He said: "Small and medium businesses are struggling. I've been in the business for 20 years and I've never known it as tough as this."

While admitting times are tough, the Government denies a recession is just around the corner saying the economy is still growing and will keep growing next year.

Jason said: "Six months ago I saw this problem coming. I took the time to write to Gordon Brown.

"They actually wrote back to me but it was a waste of time - just like hitting your head against a brick wall.

"We're getting taxed, taxed, taxed in the UK and we can't take it any longer."

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