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.