One of the nation's leading economic authorities today adds to the pressure on George Osborne to execute a U-turn on his economic policies.
The National Institute for Economic and Social Research (NIESR) urges the Chancellor to "ease off" spending cuts and consider tax rebates if the economy shows signs of a further sharp slowdown and says there is "a case for delaying some of the austerity programme but accelerating planned increases in the state pension age".
The NIESR adds that there will be no real-terms rise in house prices until 2013, allowing for general inflation, and that households will suffer a fall of 0.8 per cent in their disposable incomes this year. UK growth will be "only" 1.5 per cent, it says.
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