CEBR: Austerity could last at least 10 more years

Latest figures paint a gloomy forecast for the years ahead as it blames the deficit racked up by Labour

In grim news for the economy, the Centre for Economics and Business Research (CEBR) is forecasting a possible 10 more years of austerity, reports have revealed.

Just weeks after it released its new year predictions, the think tank's latest report said the deficit built up by Labour will not be erased until after 2020 and possibly not until 2023.

And the UK's AAA credit rating could be at risk, the CEBR warned, as debt continues to mount.

The economy has been hit hard already this year with news of Jessop's recent demise, and also the shock news that HMV has placed itself into administration.

Combined, the two firms employ more than 6,000 people.

The CEBR report blames weak growth and the government's failure to slash spending, and this failure to reduce borrowing means national debt will hit almost 85 per cent of national income in the next five years and will not start falling until at least 2018-19.