UK faces 'financial crisis' warns CEBR

According to the consultancy firm's quarterly business forecast, a pending shortfall in economic growth will force whoever is chancellor after the next general election - expected by 2005 - to take tough action on public spending and taxes. A chancellor ignoring the issues risks a "financial crisis" by 2007 or 2008, the CEBR says. Predicionts by the consultant are for UK GDP growth to hit 3% this year and 2.9% next year. This is mainly down to greater than expected strength of consumer spending, the consultancy adds. Consumer spending will, however, slow down during 2005 as risi...