CBI cuts outlook for UK economic growth but backs continued austerity

The business lobby group's leader, John Cridland, says a sharp slowdown at the start of 2015 mustn't compromise the government's programme of cuts

Britain's leading corporate lobby group has insisted the government should press ahead with its austerity drive, despite warnings that another round of deep cuts could dent the recovery.

The CBI on Monday joins other forecasters in cutting its outlook for the UK economy after a sharp slowdown at the start of the year. But it believes the weakness will prove to be short-lived and is no reason for the newly elected Conservative government to reconsider plans for another round of cuts.