This article is from the source 'guardian' and was first published or seen on . It last changed over 40 days ago and won't be checked again for changes.

You can find the current article at its original source at http://www.guardian.co.uk/business/2013/feb/13/cbi-george-osborne-infrastructure-budget

The article has changed 2 times. There is an RSS feed of changes available.

Version 0 Version 1
CBI presses George Osborne for more infrastructure spending in budget CBI presses George Osborne for more infrastructure spending in budget
(7 months later)
The CBI is to press for extra infrastructure spending from George Osborne in next month's budget after it cut its forecast for UK growth in 2013.The CBI is to press for extra infrastructure spending from George Osborne in next month's budget after it cut its forecast for UK growth in 2013.
In its quarterly economic health check, the employers' organisation said it was expecting expansion of 1% this year compared with 1.4% when it last made predictions in November 2012.In its quarterly economic health check, the employers' organisation said it was expecting expansion of 1% this year compared with 1.4% when it last made predictions in November 2012.
John Cridland, the CBI director general, said he wanted the chancellor to cut spending on the running costs of government and use the money for capital projects such as repairing roads and housing in order to give the economy a short-term boost.John Cridland, the CBI director general, said he wanted the chancellor to cut spending on the running costs of government and use the money for capital projects such as repairing roads and housing in order to give the economy a short-term boost.
"I don't think there are any big levers for the chancellor to pull," Cridland said. "But we want the levers to be pulled with more elbow grease so that we get more traction.""I don't think there are any big levers for the chancellor to pull," Cridland said. "But we want the levers to be pulled with more elbow grease so that we get more traction."
The CBI said the downgrade to its 2013 forecast had been caused by a weaker than anticipated performance in the final three months of 2012, but that the economy would avoid a triple-dip recession and grow at a slow pace over the coming year.The CBI said the downgrade to its 2013 forecast had been caused by a weaker than anticipated performance in the final three months of 2012, but that the economy would avoid a triple-dip recession and grow at a slow pace over the coming year.
It left its growth forecast for 2014 unchanged at 2%, but said the sluggishness of the economy would mean extra borrowing in both the 2013-14 and 2014-15 financial years. Net borrowing has been revised up by £9bn to £123bn in 2013-14 and by £10bn to £112.5bn in the following year – more than three times the total predicted by Osborne when he became chancellor in 2010. A weaker pound is forecast to raise the cost of imports, keeping inflation above its 2% target in both 2013 and 2014.Cridland said capital spending had been cut too aggressively after the coalition came to power and urged a rebalancing towards capital projects.It left its growth forecast for 2014 unchanged at 2%, but said the sluggishness of the economy would mean extra borrowing in both the 2013-14 and 2014-15 financial years. Net borrowing has been revised up by £9bn to £123bn in 2013-14 and by £10bn to £112.5bn in the following year – more than three times the total predicted by Osborne when he became chancellor in 2010. A weaker pound is forecast to raise the cost of imports, keeping inflation above its 2% target in both 2013 and 2014.Cridland said capital spending had been cut too aggressively after the coalition came to power and urged a rebalancing towards capital projects.
While expressing disappointment at the 0.3% contraction of the economy in the fourth quarter of 2012, he said member companies were becoming more upbeat.While expressing disappointment at the 0.3% contraction of the economy in the fourth quarter of 2012, he said member companies were becoming more upbeat.
"We are beginning to see the return of organic growth, with clear signs that firms offering the right products into the right markets are growing sales and expanding. Recent business surveys also give grounds for cautious optimism about our forward prospects."We are beginning to see the return of organic growth, with clear signs that firms offering the right products into the right markets are growing sales and expanding. Recent business surveys also give grounds for cautious optimism about our forward prospects.
"Looking ahead, external risks to the outlook in the eurozone and further afield are likely to keep growth at home and abroad in check. The potential for eurozone tensions to flare up again, coupled with tough conditions in the domestic market, explain why business confidence remains patchy. After the uncertainties of 2012, the fear of external storm clouds lingers.""Looking ahead, external risks to the outlook in the eurozone and further afield are likely to keep growth at home and abroad in check. The potential for eurozone tensions to flare up again, coupled with tough conditions in the domestic market, explain why business confidence remains patchy. After the uncertainties of 2012, the fear of external storm clouds lingers."
The Office for National Statistics said yesterday that Britain's annual inflation rate was pegged at 2.7% for the fourth successive month in January, as cheaper clothes and shoes in the new year sales helped offset dearer alcohol and tobacco.The Office for National Statistics said yesterday that Britain's annual inflation rate was pegged at 2.7% for the fourth successive month in January, as cheaper clothes and shoes in the new year sales helped offset dearer alcohol and tobacco.
The ONS said it was the first time since recent records began in 1996 that inflation as measured by the consumer prices index had remained at the same level for four months.The ONS said it was the first time since recent records began in 1996 that inflation as measured by the consumer prices index had remained at the same level for four months.
Other measures of inflation showed a small increase in January. The retail price index, used as the benchmark for many pay deals, showed the 12-month rise in the cost of living rising from 3.1% to 3.3%, while the RPI, excluding mortgage interest payments, showed inflation up from 3% to 3.3%.Other measures of inflation showed a small increase in January. The retail price index, used as the benchmark for many pay deals, showed the 12-month rise in the cost of living rising from 3.1% to 3.3%, while the RPI, excluding mortgage interest payments, showed inflation up from 3% to 3.3%.
Higher energy prices and more expensive food are expected to nudge the cost of living higher over the coming months, adding to the squeeze on consumer spending power.Higher energy prices and more expensive food are expected to nudge the cost of living higher over the coming months, adding to the squeeze on consumer spending power.
The Bank of England predicts it will be up to two years before annual price increases fall to the government's 2% target.The Bank of England predicts it will be up to two years before annual price increases fall to the government's 2% target.
Our editors' picks for the day's top news and commentary delivered to your inbox each morning.