Debt crisis 'threatens new slump'

The UK has a 70% chance of falling back into recession under the "increasingly more likely" scenario that no swift solution is found to the eurozone debt crisis, a respected think-tank has warned.

The UK's economy, which has been "stagnant" over the past year, could be tipped into decline after fears of a European debt default eroded confidence in financial markets, according to the National Institute of Economic and Social Research (NIESR).