Ex-FSA boss warns on slump

The former head of the FSA Sir Howard Davies warned of &ldquo;dramatic risks&rdquo; ahead for the economy in the UK, which he says has failed to grasp the gravity of the financial crisis.<br /><br />Now director of the London School of Economics, Davies said that &ldquo;the next six months are going to be incredibly delicate in the UK&rdquo;, and that the nation faces a dangerous rise in the level of public debt.<br /><br />&ldquo;It is very clear that something dramatic has to happen to control spending,&rdquo; he said. &ldquo;But is the economy robust enough to survive fiscal tightening?&rdquo;