The Bank of England has fuelled anxiety over UK recovery hopes after warning of a squeeze on households from slowing growth and high inflation, as well as uncertain international prospects.
Governor of the Bank of England Mervyn King said there was “great uncertainty” over the outlook for the US as well as the eurozone – the UK’s biggest trading partner – hampering efforts to build an export-led recovery.
The Bank of England in its quarterly report painted a grim picture of disposable incomes hit by the deficit-tackling measures, with some firms facing lower public sector demand following the cuts. This gloom comes after recent surveys showed a sharp slowdown in high-street sales, falling house prices and consumer confidence at its lowest for more than a year.
However, the forecast is not all gloom. The department store John Lewis has today agreed to advise public sector bodies on how to improve by involving their staff in their management.
Charlie Mayfield is quoted in today’s Daily Telegraph saying; “Whilst not a guaranteed solution to today’s challenges, the strengths of an employee-led model – such as an empowered and informed workforce and a close alignment of motivation between managers and employees – has helped us create a strong culture of trust, innovation and customer service.”.
An initial 12 “Pathfinder” projects have been announced by Francis Maude, the Cabinet Office minister. These include local mental health and children’s services.
