The Small Firms Association wants action on interest rates, labour costs and housing and accomodation in its winter economic statement. It wants a cut in interest rates to "help promote EU and world growth and act as a significant stabiliser for business and consumers". On labour costs it says the 7 per cent rise this year is more than twice the European average of 2.9 per cent, and 41 per cent of respondents in its annual survey cited increased labour costs for not recruiting. It has called for a review of policy on housing "to achieve price stability in the housing market and encourage the further development of a private rented sector". The SFA predicts GNP growth of 3.5 per cent in 2002.