Britain is in recession and 350,000 will lose their jobs taking the number of unemployed past 2m within the next year, according to a new survey.

The British Chambers of Commerce (BCC) survey shows worsening economic conditions as confidence ebbs away across all sectors.

David Frost, director-general at the BCC, said: “We are clearly in a very difficult economic period but it is important that we retain a sense of proportion. Many parts of the business community continue to perform well.

“Confidence is critical and it is vital that businesses are shown leadership. The BCC will be showing such leadership in the coming months.”