The Office for National Statistics on Wednesday revealed since the financial crisis in 2007 as figures showed the UK economy contracted 0.2 percent in the first three months of 2012.

The contraction marks the second consecutive quarter of declining growth after the economy shrank by 0.3 percent in the fourth quarter of 2011, which defines a technical recession.

In January a majority of CFOs expected Britain to suffer a 'double dip', up from just 27 percent a year ago, according to a quarterly CFO survey from Deloitte.

This month the latest data from Deloitte showed that although , CFOs remained cautious about committing any serious investment.

"The materialisation of a double dip recession, albeit one likely to last just two quarters, is likely to be seen as vindicating a cautious stance on the part of corporate," Ian Stewart, Deloitte's chief economist, said.