PwC: Osborne must boost economy

8 March 2012

George Osborne should look to use his forthcoming budget to boost the British economy as it struggles to recover in the aftermath of the recession.

That is according to a new report published today (8 March) by PwC, which has stated that the UK still faces "significant" growth risks, meaning the chancellor must be proactive in his speech later this month.

The leading consultancy noted that the economy contracted at a rate of 0.3 per cent during the fourth quarter of 2011 but added this trend is likely to reverse this year as gross domestic product will expand by 0.6 per cent.

However, PwC went on to state that the government is likely to undershoot its borrowing forecasts by around £7 billion ($11 billion) in the current financial period, which should encourage Mr Osborne to implement "carefully targeted fiscal stimulus".

John Hawksworth, chief economist at the group, commented that the main hazards in the UK are being caused by ongoing difficulties in the eurozone.

By Gary Cooper

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