CBI puts pressure on UK government to balance the books
The CBI has called upon the government to work towards balancing the budget by 2015 as opposed to a 2017 target date which was recently announced. It is no secret that the UK budget will be in deficit to at least £175 billion this year and is set to rise in the foreseeable future before turning down. However, without serious attention the budget will not be back into surplus, or at least balanced, for many years to come.
As a consequence the CBI believes that the UK government's target of 2017 is 2 years too long and has suggested these figures are reviewed. However, when you consider that national debt in the UK continues to rise (as do interest payments), tax income has been decimated over the last two years and UK government has substantial money tied up in the banking sector, it may take some time before pressure on the budget can be reduced.
Despite what many politicians may have you believe, UK public services are set to be the main target of cost saving initiatives in the short, medium and longer term, leaving open Gordon Brown's massive investment over the last decade. Whichever government gains office at the next general election will dictate which particular areas of the economy and public services will be targeted.
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