Leading economist Kate Barker told Bradford business leaders that a short-term UK recovery is likely to be hit by problems from the wider global downturn from 2015 requiring urgent action.

The former member of the Bank of England’s Monetary Policy Committee, which sets interest rates, warned that Britain’s poor productivity record – the worst in Europe – would put growth back by a decade and was pessimistic about any early improvement.

Speaking to a Bradford Chamber of Commerce lunch at the Midland Hotel, Miss Barker, a non-executive director of the Bradford-based Yorkshire Building Society, criticised the Government for lacking a cohesive energy policy and ineffective use of infrastructure.

But she welcomed initiatives such as the Funding For Lending scheme, which makes cheaper money available from the Bank of England to lenders to help support smaller businesses, and Help to Buy aimed at getting more people onto the housing ladder.

Miss Barker said the UK’s deficit was not being reduced quickly enough and threatened to deter investment here by overseas companies. But she welcomed signs of increased investment by UK businesses and said rising house prices and more house-building would boost confidence – but only narrowly.

The event was organised for the Chamber’s Executive Network representing leading Bradford companies. Chamber president Paul Mackie said: “Kate clearly commands high levels of respect among the business community for her ability to not only analyse the workings of the British and international economy, but also communicate them in an articulate and clear way.”