George Osborne believes the UK is on the road to ruin
George Osborne has stepped forward today to suggest that the UK economy is on the road to ruin without significant spending cuts in the short to medium term. This comes just days before his first budget, which many believe will be the most important budget in recent UK history, and amid signs of voter and MP unrest in relation to some of the proposals mentioned. So is George Osborne right to be so downbeat?
While there's no doubt that UK national debt, set to top £1 trillion, and the budget deficit, currently in excess of £100 million, are major problems, there is a danger of talking down the UK economy and injecting fear and concern into investment markets. George Osborne needs to find a balance between the fear factor and hope for the future and while there's no doubt his hands are tied with regards to spending cuts in the short term, as well as tax rises, he does need to be careful.
Amid all the hype, rumour and counter rumour we will finally see whether George Osborne is able to deliver one of the toughest and possibly hard-hitting budgets of all time. Time will tell!
Share this..
Related stories
Is the Bank of England scared of inflation?
Fears are growing regarding the potential threat of inflation with the Bank of England letting it be known that inflation could be a problem in 2010 and we could see a surprise increase in UK base rates. This comes despite the release of minutes from the April MPC meeting at which all members voted in favour of retaining base rates at their current low although concerns were voiced regarding infla...
Read MoreHow many different shaped economic cycles are there!
Over the last few months we have seen a number of suggestions regarding how the UK economy will perform in the short, medium and longer term with suggestions such as a V shaped economic cycle, a W shaped icon and even an Adidas tick shaped cycle. So how many different types of economic cycle are there and what exactly is the UK economy going through?
The truth is that whatever the e...
Is the credit crunch seesaw moving?
The last few days have seen signs that the UK economy could possibly be bottoming out with news that the services sector is starting to strengthen. Even know the services sector has contracted over the last six months, the rate has reduced of late with many suggesting further improvement in the short to medium term. The chartered Institute of Purchasing and Supply reported an increase in activity...
Read MoreWho will bailout the UK if funds run short?
As the UK slips further and further into debt both on an individual and a national basis there is growing concern that EU members will step into the fore and offer financial assistance in exchange for greater ties with the EU. While it would be wrong to suggest that the UK is any way on the verge of bankruptcy, there is no doubt that the expected £1 trillion of debt due to be built up over the ne...
Read MoreTrinity Mirror signals end of advertising slump
As the UK recession began to worsen in 2008/2009 it became apparent that companies were significantly reducing their online and off-line advertising budgets. This led to significant problems for media-based companies such as Trinity Mirror, the publisher of the Daily Mirror newspaper, and indeed there were concerns that some of the U.K.'s major media groups would struggle to survive. However this...
Read More