Chancellor’s Speech Echo Findings From Law Firm’s Latest UK Powerhouse Report

George Osborne has today outlined the challenges facing the UK economy over the next 12 months, just weeks after saying the UK was “growing fast” in his Autumn Statement.

The threats to the economy he described, mirror many of those highlighted in Irwin Mitchell’s latest UK Powerhouse report released earlier this week.

They include tensions in the Middle East, slowing growth in China, low prices for commodities such as oil and copper are all weighing on global confidence.

The report, made with Centre for Economic and Business Research (Cebr), also cites that the first interest rate rise since 2007 which is expected this year, will also cause growth to slow.

Treasury sources were reported in the media saying: "Anyone who thinks its mission accomplished with the British economy is making a grave mistake.

"Last year was the worst for global growth since the [financial] crash and this year opens with a dangerous cocktail of new threats.

"I worry about a creeping complacency in the national debate about our economy.

"A sense that the hard work at home is complete and that we're immune from the risks abroad.”

The Chancellor's alarming message comes days after the latest UK Powerhouse Tracker report was released forecasting that because of ‘stronger economic headwinds’ the UK economy will continue to grow in 2016 but lose momentum.

The report shows that the services sector, which includes retail, banking and tourism, is performing well, but that the outlook for manufacturing is less positive.