Can David Cameron save the UK economy?
Since David Cameron announced his coalition government with the Liberal Democratic Party there have been high hopes that he can attack the UK budget deficit and reduce the national debt. He announced a number of hard-hitting policies in the run-up to the election which caught the attention of many voters in the UK. While many of these policies are likely to be watered down in some way by the Liberal Democrat party there are high hopes that public sector investment will be cut in the short-term to reduce the budget deficit.
One of the first things which David Cameron and his new government need to address is the potential loss of the UK's AAA rating from credit rating agencies. Even though unofficially this AAA rating is under review there are hopes that the UK can retain the rating and the lower cost of debt associated with such a situation. Experts seem to be split as to whether the UK economy will recover sufficiently to maintain the AAA rating or whether we may need to go lower before returning to the heady heights of AAA.
It will be difficult for David Cameron to push through investment cuts and tax rises in the short to medium term but at least he appears to have hit the ground running.
Share this..
Related stories
Household debt set to increase, according to OBR
18/03/2016 The Office for Budget Responsibility (OBR) has said that it expects household debt to carry on growing in size until at least the end of the decade. Official forecasts indicate that weak pay growth coupled with low interest rates is likely to provide households with a means to continue to live beyond their financial comfort zone, and the fiscal watchdog said such a long period of...
Read MoreUK services sector gives welcome boost to economy
The UK services sector appears to be rebounding far quicker than many expected with the CIPS/Market services PMI index showing a rise to 58.4 in February against 54.5 in January and expectations of 54.9. This is a sector which covers everything from financial services through to hotels and restaurants and has been the engine room of the UK economy for some time. Slowly but surely it seems as thoug...
Read MoreIs the recovery in the pound to be short lived?
As the pound this week posted its largest weekly gain since 1999 and its largest five day advance against the dollar since 1989 some experts are warning against undue short to medium-term optimism. While some may see this short-term bounce as the start of a recovery from a very oversold position, there are suggestions that the move is something of a technical adjustment after the Bank of England r...
Read MoreHas the UK recession come to an end?
The revelation that the UK economy is estimated to have increased by 0.2% in the three months to August 2009 was something of a surprise for many people. The indication that the recession may well have ended in May also took many people by surprise although while these figures, from the National Institute of Economic and Social Research, use official government data they are not the official stati...
Read MoreCBI predicts rate rise
The Confederation of British Industry (CBI) has suggested that the Bank of England will increase interest rates again before the end of the year.According to the CBI's latest quarterly economic survey, the bank's monetary policy committee (MPC) will need to raise the base rate once more in the autumn to keep a lid on rising inflation levels in the UK.The interest rate has been raised four times si...
Read More