Osborne urged to change economic strategy

Chancellor George Osborne's economic strategy, intended to boost confidence and encourage investment, is having the opposite effect by deterring businesses and consumers from spending, a think tank has warned.

The sluggish recovery from recession will see the UK's long-term GDP growth rate drop to just 1.7% by 2015 - its lowest level since the Second World War and the equivalent of £165 billion in lost output over 15 years - said the Institute for Public Policy Research (IPPR).