Britain's manufacturers will only see a muted recovery this year under a "far from certain" outlook for the UK economy, a new report predicted today.

Last minute negotiations were being held tonight between European Government ministers and officials in a bid to head off a row over new employment rights for temporary and agency workers.

Business leaders urged the Bank of England not to raise interest rates this week, arguing that inflation was easing.

Rising oil prices and interest rates have hit confidence in British service firms but manufacturers have recorded their best spell of orders for nine years, two new surveys showed today.

Manufacturers are set for a boost with the Bank of England expected to cut interest rates for the first time in a year.