Darling 'to lower growth forecast'

Source: Exec Digital UK

Date :05/10/2007 11:07:02

Chancellor Alistair Darling is expected to downgrade his growth forecast for 2008 amid signs Britain's economy is facing a slowdown following the global credit squeeze, it has been reported.

In an interview with the Financial Times, Mr Darling said the credit squeeze would have "some effect" on the UK.

The paper reports that Mr Darling will downgrade his 2.5-to-3% growth forecasts for next year.

Independent economic forecasters have revised down their growth forecasts for 2008, with the consensus standing at 2.2% compared with a 2.75% mid-point Treasury forecast, the paper states.

Mr Darling said: "If you look at the consensus of the economic forecasters, it would be prudent to assume that (the credit squeeze) will have some effect on us here."

He said he was "ready" to deliver the Pre-Budget Report and Comprehensive Spending Review "whenever", although it is now widely expected to be delivered when the House of Commons returns from the summer recess on Monday.

The paper went on to say that Mr Darling had said his three-year public spending statement projects above-inflation growth, with generous settlements for health and education.

Mr Darling also delivered a warning that public sector pay awards had to be kept under control.

Lessons from the recent Northern Rock crisis had to be learned and he would look at "boundaries" between the Treasury, the Bank of England and the Financial Services Authority.

October 5 2007

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