BRITAIN is investing too little and growing too slowly as living standards stagnate, a think tank warned today following the Chancellor’s Budget announcement.

The Resolution Foundation said that Jeremy Hunt had set out an “impressively broad suite of policies to encourage more people into work” but added that Britain’s economy remains in a “deep funk.”

Its analysis of the Budget found that a £28 billion three-year increase in investment allowances will deliver a temporary 3 per cent boost but suggested that Britain needs a permanent 30 per cent boost to catch up with competitors such as France, Germany and the United States.