UK economy set for "sluggish" recovery

This is in contrast to Government forecasts of 1.25% growth this year and 3.5% for 2011, which have been branded overly optimistic by economists. Peter Spencer, chief economist to the Ernst & Young ITEM club, says: "The Chancellor's projections for future years are too bullish - based on a strong pick-up in consumer spending that is unlikely to materialise." The CBI forecasts growth prospects for the economy to be fragile in the near-term as stimulus measures such as the VAT cut and car scrappage scheme come to an end. Both the Ernst and Young ITEM club and the CBI called for more ...