Profit-taking causes stocks to fall

More needs to be done to improve economic stability in the UK and boost confidence in public finances prior to the forthcoming general election.

This is according to the Confederation of British Industry (CBI), which has urged Labour to outline how it intends to restore ’fiscal credibility’ to the country in its last Budget before the vote.

Director-general of the CBI Richard Lambert has written to chancellor Alistair Darling calling for action to be taken and the body has outlined three proposals for the government to work towards, including balancing the Budget by 2015-16 - two years earlier than planned - providing a more detailed public spending plan and improving public sector productivity.

’The UK’s deficit, though worryingly large, is still manageable, but the government must act now to set out a convincing, credible pathway for balancing the books,’ Mr Lambert remarked.

Chief economic adviser at the body Ian McCafferty recently said that the Bank of England needs to be prepared to resume its quantitative easing programme if economic recovery is deemed to be too slow.ADNFCR-2318-ID-19658183-ADNFCR