The Confederation of British Industry will today reveal it has slashed its UK growth forecast for 2011 from 2.5% to 2% to take account of the extra public spending cuts and tax hikes announced by Chancellor George Osborne in his June Budget.
In what is likely to be an unwelcome development for the Conservative-Liberal Democrat Coalition Government, the CBI is now forecasting significantly weaker expansion than the 2.3% growth forecast by the independent Office for Budget Responsibility set up by Mr Osborne.
