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“Slower growth in 2011” says BCC
British Chambers of Commerce lowers UK economic growth forecast
Growth of GDP will be slower than its initial forecast of 2.3% in 2011, according to the British Chambers of Commerce, which has now revised its forecast down to 2.1% for next year
BCC director general David Frost warned that “the recession may have technically ended but there is no room for complacency. The obstacles to a sustained medium-term recovery now appear greater.”
The revised forecast appears to be based on the BCC’s perception that from 2011 the Treasury’s forecasts of public sector borrowing are “too optimistic,” and net public sector debt could increase to “dangerous levels.”
Mr Frost reiterated calls for the Government not to implement the 1% rise in National Insurance contributions planned for April 2011, and said raising VAT by 1% to 18.5% would be a better option. He also demanded a “credible debt-reduction plan” from the Government at the next budget, a demand echoed by
CBI director general Richard Lambert today.
However, in the same forecast, the BCC did lower its prediction for unemployment to peak at 2.65 million in 2010, down from 2.7 million, and chief economist David Kern said “Britain's position is not worse than that of many other European economies."
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