MPs increasingly bleak on economic outlook

Monday, 29 August 2005 12:00 AM

MPs are increasingly pessimistic about the outlook for the British economy in the coming twelve months, according to new research.

The poll by CommunicateResearch found Labour backbenchers increasingly pessimistic about the economic outlook.

Four out of ten of the 100 peers and two out of ten of the 153 MPs asked predicted economic growth would worsen over the next 12 months.

The latter figure had doubled year on year.

A total of 44 per cent of MPs overall said they believed unemployment would grow.

But the July poll found both Tories in the Commons and the upper house were more pessimistic than their Labour counterparts.

Seven out of ten Tory peers said economic growth would slow in the next 12 months, while nearly six out of ten Tory MPs agreed. Only eight per cent of Labour peers and two per cent of Labour MPs concurred.

Six out of ten Tory peers and nearly four out of ten Tory MPs (38 per cent) said inflation would rise. Only ten per cent of Labour peers agreed.

A mere one per cent of Labour MPs believed inflation would fall.

On interest rates, 46 per cent Labour MPs predicted the cost of borrowing would come down, while only 13 per cent of Tory peers said rates would rise.

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