John Cridland
John Cridland, director general of the CBI, said government ministers are "dazzled in the headlights" over the UK economy (Reuters)

CBI head John Cridland blasted Chancellor George Osborne's failure to tackle the country's lacklustre and recessional economic growth, claiming government ministers look "dazzled in the headlights".

Cridland's comments in the Financial Times follow the appointment of the CBI's chief economic adviser Ian McCafferty to the Bank of England's monetary policy committee (MPC) as a replacement for Adam Posen.

They are in direct contrast with Posen's comments that the UK economy is not as bad as some are saying.

"I think it is really disappointing how long it is taking to get momentum and urgency into the growth plan," Cridland said.

In his 2011 autumn statement Osborne pledged £6.3bn of public cash, as well targeting pension funds to try and get £20bn of investment, in infrastructure projects.

There was also £400m for the Get Britain Building fund, aimed at stimulating the construction of new homes across the country.

"Where are the diggers on the ground?" Cridland asked.

Posen told the Kent Messenger that the UK economy is "not great but not as terrible as some people make it out to be".

"Confidence is lacking and people are not quite ready to make the big investment," Posen said.

"Most are rebuilding their workforces, keeping them stable, giving minimal pay rises. Most of the businesses we spoke to don't feel the need to put up prices any time soon."

Britain is in recession, its second in four years and the first double-dip since the 1970s, after the country's construction industry output collapsed.

Recent private industry data showed yet more dismal performance in the construction sector, as well as a continued contraction in manufacturing output, and slowing growth in the service sector, which represents around three quarters of UK GDP.

Two new credit easing schemes from the Bank of England have been launched in a bid to free up affordable credit for businesses and consumers.

Banks will be offered cheap loans as a financial incentive to free up lending.

Access to the loans is directly linked to how much they lend to the wider economy.

The Bank also increased its quantitative easing programme by £50bn in July to a total of £375 in another desperate bid to get the economy moving.

GDP Bank of England