Economic recovery will be ‘sluggish’

Economists have warned that the UK's financial recovery will be ‘sluggish' and much slower than government predictions.

The Confederation of British Industry (CBI) and economists at the Ernst & Young ITEM Club have both warned that the government's current forecasts for growth - 1.25% this year and 3.5% in 2011 - are too optimistic.

The CBI expect the economy to grow by 1% this year and by 2.5% in 2011 and have called for Chancellor Alistair Darling to provide more detail in Wednesday's Budget regarding how the UK's ever expanding deficit will be cut.