Some signs of recovery in British economy but it will be slow – Mervyn King

By JAMES TAPSFIELD
Published on 21/09/2012 03:04

BANK of England Governor Sir Mervyn King has insisted there are “a few signs” of recovery in the British economy.

But he warned any recovery would be slow and that the crisis in the eurozone had cast a “black cloud of uncertainty” over businesses around the world.

In his first live television interview last night, Sir Mervyn said he had predicted a “zig-zag year” for the UK economy.

“The last quarter was down, I think the next quarter will probably be up,” he said. “I think we are beginning to see a few signs now of a slow recovery, but it will be a slow recovery. After a banking crisis, one can’t expect to get back to normal and I fear it will take a long time.”

On Channel 4 News, Sir Mervyn cautioned Chancellor George Osborne not to water down the proposals for reform of the UK’s banks proposed in Sir John Vickers’ review.

And following reports the government could miss its target of beginning to see national debt falling by 2015-16, he said that would be acceptable only if the global economy was growing slowly. He also told eurozone finance ministers that “now is the time” for them to settle the future of the currency.

Meanwhile Lord Young, one of David Cameron’s key advisers, faced a backlash after questioning whether Britain was really in recession.

At an event in Sheffield, he was asked if it was a good time to start a business. He reportedly replied: “I have experienced every recession since 1955 and I have never known a recession where employment goes up and at a time when the population is growing. I am not sure the government can actually measure the economy any more…Downing Street played down the significance of his remarks, insisting he was merely highlighting contradictions in recent economic data.