Osborne has little room for manoeuvre

CHANCELLOR George Osborne has limited options for pulling the economy out of its rut when he presents his fourth annual budget on March 20.

Faced with the risk of a third recession since the 2008 financial crisis, Mr Osborne is under growing pressure to act and he is expected to announce some measures to help investment in infrastructure, possibly offset by spending cuts elsewhere.

He may also opt to change the official remit of the Bank of England to give the central bank more room to stimulate demand.

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But economists say Osborne’s options are limited, given his determination to cut the national debt.

The British Chambers of Commerce and the CBI called for more investment in road repairs as a quick way to spur economic growth. The CBI added that building 50,000 affordable homes and encouraging repairs of existing houses could create more than 150,000 jobs.

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