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Britain growth forecast zero

The Governor of the Bank of England Sir Mervyn King says the economy has reached a point where it is virtually flatlining. He downgraded his growth forecast for this year to around zero. Britain's economy, in other words, is grinding to a halt.

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Labour: How much more evidence do we need for plan B?

Labour MP Rachel Reeves said today's inflation report by the Bank of England which slashed growth predictions from 0.8% to 0% showed the government must accept their plan 'A' to cut the deficit and stimulate growth is not working. She said:

"The economy has now shrunk over the last two and a bit years, since the coalition came to power, unemployment is higher since the coalition came to power and the deficit has actually increased."

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