Wednesday, 9 November 2011

CBI cuts forecasts and says we can build roads to recovery

The Confederation of British Industry (CBI) has set out what it calls Plan A+ and calls on the government to "revitalise its growth strategy"

Their report appears to suggest that the UK economy will stall by the year-end but at the same time,it warns the government against moving away from its pledge to erase the country's huge budget deficit.

The CBI cut its forecasts for British growth to 0.9 percent this year and 1.2 percent the next, from the 1.3 percent and 2.2 percent respectively it predicted in August.

However it expects inflation ed to decline from its current rate of 5.2 percent, starting from the first quarter of next year, and reach the Bank of England's target rate of 2 percent in the first three months of 2013.

Amongst its proposals are 26 new road projects, including two privately funded toll schemes: widening the A14 from Rugby to Felixstowe and improving the A1 in the North East.

It also advocates a £500 million package for growth, including credits for companies that hire young unemployed people, and a rebate for energy-intensive industries hit by the carbon floor price, which requires polluters to pay a minimum price for their emissions.

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