Osborne has little room for manoeuvre
Faced with the risk of a third recession since the 2008 financial crisis, Mr Osborne is under growing pressure to act and he is expected to announce some measures to help investment in infrastructure, possibly offset by spending cuts elsewhere.
He may also opt to change the official remit of the Bank of England to give the central bank more room to stimulate demand.
Advertisement
Hide AdAdvertisement
Hide AdBut economists say Osborne’s options are limited, given his determination to cut the national debt.
The British Chambers of Commerce and the CBI called for more investment in road repairs as a quick way to spur economic growth. The CBI added that building 50,000 affordable homes and encouraging repairs of existing houses could create more than 150,000 jobs.