Harrison says PBR too optimistic over recession

The group's head of equities says despite significant downgrades, government estimates of economic growth over the next few years are still too optimistic. The increase in government borrowing, announced in this week's pre-Budget report, is still underestimating the damage to government finances likely to be seen in the coming years, says Harrison. "Revenues will disappoint and spending estimates are too low. I am sceptical of the ability of the government to cut costs and therefore expect large increases in taxation in due course," he adds. "Credit default swaps on UK government debt...