Top economist warns of an age of less prosperity

Tom Vosa, the chief economist at Yorkshire Bank, warned that consumers would have to cut their spending as they adapted to less prosperous conditions.

He added: "It will be painful but will lead to a more sustainable

growth path."

Mr Vosa talked about the challenges facing the Government during a keynote speech to 100 business leaders at the Institute of Directors North Yorkshire regional dinner at Castle Howard. Speaking before last night's dinner, Mr Vosa said economic activity in Yorkshire had accelerated since April, after a disappointing first quarter.

He said Yorkshire's economic performance "had clearly slipped below average" over the first three months of 2010.

He said: "It could just be a blip. We can't get to the bottom of it...We have got the genesis of a private sector led recovery.

"What we need from the Government is transparency and consistency over where the (public sector) cuts will be made."

Mr Vosa warned that cuts in public spending would hit the north of England harder than the south, adding: "There will be some firms who stand to lose if they are reliant on Government funding.

"Confidence comes from when you know what the Government is going to do and can plan for it."

Mr Vosa is head of market economics for Europe at National Australia Bank and is also the chief economist for Clydesdale and Yorkshire banks in the UK.

Fiona Sidwell, branch chairman for the IoD in North Yorkshire, who also spoke last night, said: "At a time of economic uncertainty, and with the country's finances under the spotlight, this was an opportunity to learn more about the challenges ahead and the economic prospects facing us."