Recovery set to continue, says economist

Britain's economic recovery looks set to continue despite tax rises and public spending cuts next year, Bank of England chief economist Spencer Dale was quoted as saying in a regional newspaper.

In a interview given earlier this month, Mr Dale also said inflation would remain above target for some time.

"We have seen four quarters of growth and I expect the recovery to continue," he said.

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"Inflation is above target at the moment and I think it will be above target for the next year or so, in part pushed up by the rise in VAT."

He said some firms suggested things were "looking better" against last year but there was still a long way to go until order books were back up to normal.

Exporters, he said, were still benefiting from the weakness of the pound, but construction firms were facing a more uncertain outlook.