Recession triggers upheaval in British business

British business will reshape the way it works as a consequence of the recession, with innovative lending practices and commercial models emerging, the nation's top employers' body said Monday.

The Confederation of British Industry (CBI) hosts its annual conference in London on Monday to discuss how business needs to adapt following Britain's longest recession on record.

The CBI said in a key report, published to coincide with the meeting, that the recession and credit crunch had "become the catalysts for a new era."

"The recession has raised concerns about commercial models, supply chains and finance that will reshape business behaviour well into the next decade," the CBI said.

It added, "Businesses do not see credit terms falling back to pre-crunch levels and, having become wary of higher debt levels, firms will look to alternatives to debt-driven growth to protect investment and innovation.

"More financing options will be created and deployed," the organisation noted in a report entitled 'The Shape of Business The Next 10 Years.'

The CBI also claimed that British companies will also reorganise their approach to working with partners, such as suppliers, and competitors.

It added that "sustainability and ethics will become more integrated into the business model," while a more flexible workforce will evolve. LONDON, AFP