UK economic growth falters
Economic growth in the UK economy for the first quarter of 2010 has been confirmed at 0.2%, a figure which is that expected by analysts. The vast majority of economists had been expecting an increase of 0.4% over the three-month period, similar to the final three-month period of 2009, but were sadly disappointed this morning. This latest announcement casts further doubt on the strength of the UK economic upturn and is also something of a bitter blow for Gordon Brown and his hopes of re-election.
However, this has not stopped Gordon Brown from going on the attack this morning with a suggestion that the Conservative party's partial clawback of the increase in national insurance could put the recovery of the economy in jeopardy. On the other side of the coin this has again given the Conservative party the opportunity to question Gordon Brown's record on the UK economy and place in further doubt his role in a future government.
Despite the fact that hundreds of business leaders from the UK have given support to the Conservative party plan to reduce the national insurance increase the UK government is adamant this is the way forward. An increase in business operating costs will ultimately impact upon the ability of businesses to take on new recruits, which will surely push unemployment higher and higher?
Share this..
Related stories
UK retailers hoping for a cold snap
UK retailers are praying for a cold snap as we approach the festive period with unseasonably warm weather set to impact upon the sale of traditional warmer items on the high street. While it is unlikely that this period of relatively warm weather will continue for much longer, the longer it does continue the more impact this will have on the UK high street and the UK retail sector.
...
When will unemployment in the UK start to fall?
A report in the financial press today suggests that UK unemployment will peak at 2.8 million in 2010 but there is no suggestion as to when we can expect a significant fall in unemployment. While the fact that unemployment appears unlikely to reach the 3 million barrier has been well received there is still confusion and debate as to how quickly we can expect the unemployment number to come down on...
Read MoreBT workers on the verge of strike
The Communication Workers Union, which represents the interests of 50,000 BT employees, has today ridiculed the latest pay deal offered by BT. The pay offer by BT is below the rate of inflation which effectively means that the spending power of BT employees would be reduced in real terms. What makes the situation even worse is the fact that some senior BT executives are rumoured to have received p...
Read MoreCBI raises doubts about UK economic recovery
The latest quarterly survey from the CBI has highlighted the fact that many UK banks and building societies believe that the recent increase in lending will collapse in the first quarter of 2010. While many people are becoming more and more confident about the UK economy, due to the fact there has been an increase in lending over the last six months, many banks and building societies believe that...
Read MoreUK unemployment down to 2.47 million
UK unemployment fell by 34,000 in the 3 months to May, now standing at 2.47 million, which is very much in line with analysts expectations. However, despite the fact that overall unemployment is down to 7.8%, against initial forecast of 7.9%, there are growing issues with regards to the UK employment market and the outlook for the future. So what can we expect? Unfortunately, despite the fact t...
Read More