Financial Times FT.com

UK faces dangerous year, says Brown

By George Parker in London

Published: January 6 2008 22:01 | Last updated: January 6 2008 22:01

Gordon Brown on Sunday warned Britain’s economy faces a “dangerous” year ahead as he battled against rising energy prices and higher pay awards that he fears could undermine his pledge to “break the back of inflation”.

Although he insisted Britain’s economy was strong, the prime minister saw dark clouds gathering across the Atlantic, including last week’s sharp rise in unemployment that raised fears of a serious US downturn.

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