Mervyn King on Tuesday said the UK could not afford a second fiscal stimulus in next month’s Budget, in a rare public warning by the central bank governor. In comments that will weigh on Gordon Brown ahead of next week’s G20 summit in London, King said Britain faced “very large fiscal deficits over the next two to three years”. His concerns were echoed by the European Commission which on Tuesday gave Britain until 2013-14 to bring the budget deficit back below 3% of national income.
