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| Version 1 | Version 2 |
|---|---|
| UK economy 'skating on thin ice' | UK economy 'skating on thin ice' |
| (about 6 hours later) | |
| An influential forecast group is worried about the risks individuals, firms and ministers are taking with amounts borrowed. | An influential forecast group is worried about the risks individuals, firms and ministers are taking with amounts borrowed. |
| Ernst & Young's Item Club spring forecast said people are "overly relaxed about risk" and are "spending as if it was going out of fashion". | Ernst & Young's Item Club spring forecast said people are "overly relaxed about risk" and are "spending as if it was going out of fashion". |
| Club chief economic adviser Peter Spencer said: "The bottom line is that we are all living beyond our means." | Club chief economic adviser Peter Spencer said: "The bottom line is that we are all living beyond our means." |
| The Treasury said the UK's performance and household finances remained strong. | |
| The report highlights the current deficit in the public sector and expresses surprise that it built up at a time of economic strength and buoyant tax revenues. | The report highlights the current deficit in the public sector and expresses surprise that it built up at a time of economic strength and buoyant tax revenues. |
| "If the Chancellor is forced to borrow so much when the economy's so sweet, what will happen when it turns sour?" Mr Spencer asked. | "If the Chancellor is forced to borrow so much when the economy's so sweet, what will happen when it turns sour?" Mr Spencer asked. |
| "Ultimately we are all skating - not to say wobbling - on thin ice," he added. | |
| Growth 'impressive' | |
| The Item club also says that the business sector is driving economic growth faster than either government or consumer spending. | The Item club also says that the business sector is driving economic growth faster than either government or consumer spending. |
| It points out that business investment at the end of last year was 13.5% higher than it had been a year before. | It points out that business investment at the end of last year was 13.5% higher than it had been a year before. |
| "The UK's macroeconomic performance, in the words of the IMF, 'remains impressive' with the UK economy having now grown for a record 58 consecutive quarters," a Treasury spokesman responded. | |
| The Treasury said UK net debt was lower than the European average, as well as the US, and was second lowest in the G7. | |
| "Household finances also remain strong, having benefited from robust growth, rising employment and low and stable interest rates," the spokesman added. |