Triple-dip alert: Recession fears as figures show industrial output has fallen to lowest level in 20 years Further fall in North Sea production which has dropped by almost 50 per cent in the past three years Cameron declares Britain must be more like Germany and develop a modern workforceFears a cold winter could spell further economic gloom | UPDATED: 13:27 GMT, 8 December 2012 In a blow for Chancellor George Osborne financial markets have predicted Britain is heading for a triple dip recession Britain is on the brink of a triple-dip recession, experts warn as latest figures reveal industrial output has now fallen to its lowest level in 20 years. In a week when chancellor George Osborne put yet another squeeze on the hard working middle-classes, figures for October revealed manufacturing production dropped by 1.3 per cent – more than two per cent down on this time last year. Markets had been optimistic that October would have seen a rise in industrial production but figures from the office for national statistics revealed it had fallen by 0.8 per cent
Europe's 'lost generation': Unemployment reaches record high with 19 million people out of work across 17 countries Total of 18.7million people out of work across the Eurozone in October – an increase of 173,000 on the previous monthSpain and Greece have the region's highest unemployment rates of more than 25 per cent | UPDATED: 15:38 GMT, 30 November 2012 European unemployment has reached a record high – with almost 19 million out of work across the 17 countries that use the euro. More than 10 per cent of people living in the Eurozone are now unemployed with those under 25 struggling the most to find jobs. Experts said the prospect of a 'lost generation' of young people now looks like an 'alarming possibility'.
Osborne warned his slow economic growth could mean another SIX years of cuts and VAT rising to 25% Institute for Fiscal Studies delivers alarming assessment of the Chancellor's economic planMore pain to come after growth proved more sluggish than predictedAusterity may have to last until 2018 or impose an extra 23billion of cuts by 2015-16Mr Osborne urged to ditch target for debt to be falling by 2015 | UPDATED: 17:54 GMT, 26 November 2012 Warning: Chancellor of the Exchequer George Osborne has been told he could face having to increase tax and impose more cuts to meet pledges to cut the deficit The era of austerity could last until 2018 and VAT may have to rise to as high as 25 per cent to help plug the hole in the public finances, the Chancellor was warned last night. Economists said that if George Osborne wants to meet his pledge to cut the deficit, he could be forced to announce dramatic tax increases, or impose further cuts. The influential Institute for Fiscal Studies said the continued sluggishness of the economy means the current squeeze on public spending may have to last until 2018.