Britain's economy will grow by 3.1% this year after a turnaround in household fortunes, but trade and austerity challenges still lie ahead, a forecasting group has said. The Centre for Economics and Business Research (CEBR) said a rise in disposable incomes, business investment and a construction sector boosted by a buoyant housing market would all accelerate the economic recovery in 2014. It pointed out that the improving economic data would benefit the government – especially the Conservatives – in the run-up to next year's general election: "There is probably scope for modest tax cuts of about £7bn gross … ... (full story)