Government “must kickstart growth”

John Cridland said ministers appeared to be “dazzled in the headlights”, resulting in a lack of progress on the growth strategy set out by Chancellor George Osborne seven months ago.

Asking “where are the diggers on the ground?” Mr Cridland criticises delays in road improvement plans, in agreeing renewable energy subsidies and the failure to harness private finance to bolster the recovery.

The head of the business lobby group said: “I think it is really disappointing how long it is taking to get momentum and urgency into the growth plan.”

His comments come amid expectations that Mr Osborne will announce a package of measures before the summer parliamentary break to accelerate social housing and transport projects.

Mr Cridland said such moves cannot come soon enough: “The risks that the eurozone headwinds can really flatten the economy are still pretty considerable.”