CBI cuts prediction for 2011 Q1 economic growth

Concerns for 2011 cause CBI to reduce prediction for economic growth in Q1 2011. January's VAT rise and fears over public sector cuts cause CBI to change estimate for Q1 2011 economic growth. The imminent public sector cuts and VAT rise have caused the CBI to dramatically reduce its economic growth predictions for Q1 2011 from 0.3% to 0.2%. The employment body believes a rise in energy bills and a higher rate of tax will hit consumers hard in the first few months of 2011 and slow the UK's overall recovery, however it stressed it does not believe the country will fall back into a recession.