| Updated:
Ex-FSA boss warns on slump
The former head of the FSA Sir Howard Davies warned of “dramatic risks” ahead for the economy in the UK, which he says has failed to grasp the gravity of the financial crisis.
Now director of the London School of Economics, Davies said that “the next six months are going to be incredibly delicate in the UK”, and that the nation faces a dangerous rise in the level of public debt.
“It is very clear that something dramatic has to happen to control spending,” he said. “But is the economy robust enough to survive fiscal tightening?”