Growth for 2013 slashed

The UK economy will grow by just 0.6 per cent this year, according to the latest forecasts by the British Chambers of Commerce (BCC).

The organisation downgraded its 1 per cent forecast for 2013, blaming worsening prospects in the eurozone. It also predicted lower growth next year of 1.7 per cent, although it sees this rising to 2.2 per cent in 2014. The BCC added unemployment would be 50,000 lower in the middle of 2014 than it forecast in December.