Chancellor George Osborne was handed a double dose of Christmas gloom today with figures showing weaker economic growth and higher government borrowing.
City economists said a lurch back toward “triple-dip” recession over the winter is now “touch and go” and the chances of Britain losing its prized AAA credit status has increased.
The Government borrowed £17.5 billion last month, far more than expected. So far this financial year, borrowing has hit £92.7 billion, some £8.3 billion more than the same period a year previously, largely because of soaring benefit and debt interest bills.
Meanwhile, the estimate of GDP growth between June and September was downgraded from one per cent to 0.9 per cent by the Office for National Statistics.
Howard Archer, chief UK economist at forecasters IHS Global Insight, said: “It looks touch and go as to whether the economy can avoid renewed contraction in the fourth quarter.” He predicted a “difficult-looking 2013” with Britain “eking out” only 1.1 per cent growth.
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