BCC expects the UK economy to shrink in 2012

The British Chambers of Commerce has called for a government infrastructure spending programme as it predicted that UK GDP would shrink by 0.4% in 2012.

The BCC also cut its forecast for 2013, from 1.9% to 1.2% growth.

The industry body said the eurozone crisis and a sharp rise in food and oil prices posed a continuing threat.

Emma Simpson reports.