UK 'under threat' of double-dip recession

The threat of a double-dip recession in the UK is a real possibility, one expert has claimed.

Dr Howard Archer, chief European and UK economist for IHS Global Insight, noted that the country is taking a risk with the growth outlook if the government tightens fiscal policy.

He added that Labour said that introducing major cuts in the short-term - as has been seen under the new administration - increased the risk of the downturn returning.

The specialist added that the announcement of extra fiscal tightening by those in power increases the chances of this occurring.

Dr Archer remarked that the big worry for the future is the decrease in public sector employment and what range of measures will be introduced to counteract this development.

He noted that consumer spending will be affected, as the private sector will not be able to offset it completely.

Geoffrey Dicks, a senior official at the Office of Budget Responsibility, recently said that the coalition government's Budget has increased the likelihood of a double-dip recession.