Double-dip recession not ruled out

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David Cameron has refused to rule out the possibility of a “double-dip” recession in Britain, fuelling speculation that the country is facing a serious economic crisis.

The Prime Minister said the UK would experience “a difficult time because of what is happening in the eurozone” but added he was committed to ensuring it comes “safely through the storm”.

Asked about the risk of a return to recession, he replied: “What I would say is that it is clear that the last quarter of the economy we did grow – we grew by 0.5 per cent. Others are forecasting growth, but it is clearly slowing and it is a difficult time for the economy.”

It is less than two years since Britain came out of recession. Before then, the economy had been shrinking for 18 months.

But Shadow Chancellor Ed Balls has accused Mr Cameron and Chancellor George Osborne of a “grossly irresponsible” attempt to blame the eurozone for Britain’s stalled growth.

Doubts on euro: Page 8.