Think tank calls for sterling to be devalued

<p>Manufacturing has been hurt by sterling’s strength.</p>

The manufacturing industry in the UK has been negatively affected by the strength of sterling, according to a think tank's latest report.

It was claimed by Civitas that devaluing the pound would result in a boost for the sector that would improve growth in the economy as well.

In the An Exchange Rate Target: Why we need one report, entrepreneur and economist John Mills called for sterling to drop in value to about 1.05 US dollars, or 0.80 euros, from its current level of around 1.50 US dollars or 1.17 euros.

He said: "There are no solutions to our current problems, other than increasing our competitiveness and paying our way in the world."

Mr Mills added this would help to tackle unemployment by creating jobs, as well as reduce the welfare bill and cut inequalities in wealth.

Sterling recently rose one per cent against the US dollar on the back of the news the UK's economy grew during the first quarter of the year, therefore avoiding a triple-dip recession.

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