UK growth to remain weak, says EU body
Britain must prioritise "growth-enhancing" public expenditure in order to support the weak economy, the European Commission said yesterday.
The Commission said that it expects the UK economy to grow by 0.5 per cent in 2012, less than the 0.8 forecast by the Office for Budget Responsibility. It added that, due to this lower growth, the Government will not reduce its budget deficit below 3 per cent by 2014-15.
The IMF has recommended that the Government should be prepared to slow down its deficit reduction schedule – effectively adopting an economic Plan B – if growth does not pick up in due course. But the Commission insisted yesterday that the UK should "fully implement the budgetary strategy for the financial year 2012-13 and reinforce the budgetary strategy for 2013-14 and beyond".
A Treasury spokesman said that the Commission was backing the Government's course. But Rachel Reeves, Labour's Shadow Chief Secretary to the Treasury, said: "This is just the latest international organisation to warn that the Conservative-led Government urgently needs a plan for jobs and growth."
Other recommendations from the Commission were for the Government to increase the housing supply and the flow of credit to small businesses.
- 1 President of Argentina adopts Jewish godson to 'stop him turning into a werewolf'
- 2 Downfall of Dustin 'Screech' Diamond, the 'Saved By The Bell' star charged with bar stabbing
- 3 The 'Black Museum': After 150 years, public set to see exhibits from police’s grisly crime museum
- 5 Sir Winston Churchill’s family begged him not to convert to Islam, letter reveals
President of Argentina adopts Jewish godson to 'stop him turning into a werewolf'
Downfall of Dustin 'Screech' Diamond, the 'Saved By The Bell' star charged with bar stabbing
Syrian teenager Usaid Barho reveals how he escaped from Isis using a suicide vest
Sir Winston Churchill’s family begged him not to convert to Islam, letter reveals
UK weather: 'Coldest night of the year' tonight as freezing temperatures plummet to -10C
Millions of Britons struggling to feed themselves and facing malnourishment
British actor Idris Elba cannot star as James Bond because he is black, says shock jock Rush Limbaugh
Ukip member gets into Christmas spirit with Union Flag plea to Santa 'for our country back'
Germany anti-Islam protests: 17,000 march on Dresden against 'Islamification of the West'
Nigel Farage: Ukip leader named 'Briton of the year' by The Times
Douglas Carswell tells Ukip to stop blaming foreigners as youth poll shows Nigel Farage is even less popular than Nick Clegg
£20000 - £25000 per annum: Recruitment Genius: A fantastic opportunity has ari...
£22000 - £28000 per annum: Recruitment Genius: A fantastic opportunity has ari...
£20000 - £23000 per annum: Recruitment Genius: Our client is a global marketin...
£17000 - £18000 per annum: Recruitment Genius: A fantastic opportunity has ari...