ITEM says UK economic policy must be shaken up to beat dip

Ben Southwood
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GOVERNMENT must shake up both fiscal and monetary policy to finally deliver the impetus for robust growth, a widely-regarded economic consultancy demanded this morning.

Budgets must be tilted further towards infrastructure and investment spending, ITEM said, with more than just the £5bn announced in the Autumn Statement.

And the Bank of England should throw out its inflation target as “a risk to its credibility”, and move to an entirely new approach with new governor Mark Carney.

This came in ITEM’s newest economic forecast, which predicted the economy would grow just 0.9 per cent in 2013.