spending cuts

Spending Cuts Will Slow Economic Recovery

The UK’s economic recovery will be slower than expected in 2011, following the Government’s programme of public spending cuts, the Confederation of British Industry (CBI) has said. The business group has downgraded its forecast for economic growth next year, saying that GDP will only increase by 2% — not 2.5% as previously suggested. “The action to get the public finances back onto a sustainable footing will no doubt temper the recovery going into 2011,” said CBI chief economic adviser, Ian McCafferty. However, the CBI added that the prospect of returning to a recession was “unlikely”. “The degree of uncertainty around the outlook remains high, but our view is that the UK’s tentative recovery will be sustained, albeit with weaker levels of growth,” said ... »