THE head of the Institute of Directors policy unit warned there could be dangers ahead for the UK economy when she gave a keynote speech at the AGM of the Thames Valley branch of the institute.

The AGM also marked the closing of the branch and the introduction of three separate area organisations for Bucks, Berks and Oxon, each with their own committee and funding from central office at Pall Mall, London.

Robert Oxley, who runs Integra Marketing Services in Bourne End, has taken on the role of chairman of the Buckinghamshire branch.

Ruth Lea, who is based at Pall Mall, told a packed audience at Bisham Abbey last Wednesday evening: "The business opinion survey from the IoD showed the economy is remarkably robust and most of our members still felt pretty optimistic.

"But undeniably the economy is slowing down."

Ms Lea said although the registered number of unemployed is now under one million and inflation is under control there are dangers for the future, in particular from a lowering in Stock Market confidence and from the foot and mouth outbreak.

"The images of this country abroad is absolutely appalling and is a threat to the British economy," she said, referring to the epidemic.

Ms Lea said while the American economy was going through a turbulent time which was having an impact on the UK the US is a major inward investor into the country she was confident the US, because of its enterprise and drive, would bounce back.

But she believed that what is happening in Europe, especially with the euro, was disappointing and repeated her view that Britain should not join the euro for the foreseeable future.

"I cannot see when we will get convergence and we should keep the pound until there is no doubt," said Ms Lea.

She also spoke of the increasing regulatory burden on companies, in particular from labour market regulations.

The AGM presented Sir Nigel Mobbs, who had been president of the Thames Valley branch for the past 12 years, with a silver wine cork to thank him for his guidance during that time.