1% Growth ‘The New Norm’ For UK

Leading economists have warned in a new report that one per cent could be the new norm in the UK in the coming years.

The country recorded growth of 0.7 per cent in the second quarter of the year, with some analysts predicting GDP expansion for the year as a whole will be over one per cent.

In the report, Tim Congdon, Joanna Davies, Haroon Fatih, Dr Andrew Lilico, Robert Sierra, Peter Warburton and Trevor Williams argued that unless action is taken the UK's economy will now only double in size every 70 years.

They noted the Treasury's claim that 2.5 per cent growth for the economy is sustainable in the long-term may not be true.

It was pointed out: "The instinctive desire to reclaim the economic heights of late-2007 or early-2008 may not be consistent with the return to a sustainable path of economic development."

These comments come shortly after the UK's chancellor George Osborne insisted in a major speech in London that the economy is turning a corner.

Though he was criticised for the address by the Labour Party, business secretary Vince Cable defended Mr Osborne.

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