The CBI has called for the reintroduction of mortgage indemnity guarantees as part of its plan to kick-start growth in the private sector in the UK.
The business group is calling on the Chancellor to stick to current deficit reduction plans in his autumn statement and consider specific measures to kick-start growth by unlocking private sector investment and removing what it calls ‘road blocks’.
The CBI now expects GDP growth to be 0.9% in 2011 and 1.2% in 2012, down from 1.3% and 2.2% respectively.
However, the CBI believes that weak economic performance and growing fiscal instability in the Eurozone make it even more important that the government safeguards the UK’s AAA credit rating.
It is also publishing its proposals to the Chancellor ahead of the autumn statement on 29 November, designed to boost growth and raise confidence.
John Cridland, the CBI’s director-general, said: “The government must stick to its plans to bring down the deficit to maintain confidence in the UK’s public finances and keep the cost of borrowing down