Bumpy road ahead warns Mandelson

THE UK is now in "significant debt" despite unprecedented government intervention pulling a spiralling private economy "back from the brink", Lord Mandelson said last night.
By The Newsroom
Published 2nd Mar 2010, 11:21 BST
Updated 2nd Mar 2010, 11:22 BST

The Business Secretary told business and City leaders that the economic road ahead was certain to be "bumpy", but he added that the worst predictions about where the credit crisis would leave the UK had not been realised.

In a speech in the City of London, Lord Mandelson said: "Britain's economic recovery will not be driven by consumer debt or public spending. It can only be driven by private enterprise and investment, backed by active and strategic government."

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nThe pound hit a nine-month low against the dollar yesterday as fears over a hung parliament sparked a sterling sell-off. The currency fell sharply to as low as 1.478 against the dollar as well as going below 1.10 against the euro.