Bank of England sees recovery towards the end of 2009
In a move which will surprise many observers ahead of the budget on Wednesday it has been revealed that the Bank of England expect the UK economy to recover towards the end of 2009 and move into positive territory in 2010. Despite the fact that today we saw inflation turn negative for the first time in 50 years it seems as though the UK recession may be coming to an end and consumers may be growing in confidence.
While the move by the Bank of England could not have been better timed for the Labour Party and the UK government there are concerns of "rose tinted glasses" with some experts fearing it will be well into 2010 before we see any sustained recovery in the UK economy. For all of the huff and puff ahead of the UK budget on Wednesday in reality we will see taxes edge higher but all eyes will be on the forecast for the future, the government budget deficit and national debt.
It is highly likely that the UK government will use the growing optimism throughout the UK as cover for an admission that "we got it wrong" with regards to forecasts for the economy in November 2008. The figures have been shown to be so far out that the government's credibility is at stake and it will take a good show on Wednesday to put them back on track.
Share this..
Related stories
Step forward Richard Branson, Northern Rock is for sale!
The UK government will later this week confirm that Northern Rock will be split into a "good bank" and a "bad bank" after expected clearance from the European Commission is confirmed. It has also been revealed that the mortgage specialist assets of the group will be sold in the short term and should raise around £1.5 billion which will be injected back into the UK government coffers.
Read More
Did Alistair Darling outfox David Cameron?
Those who follow the political press will be well aware that the Conservative party has been highlighting a number of tax rises which will hit the UK in the 2010/11 tax year although on the whole there has been very little to complain about regarding the latest UK budget. So why is this? The truth is that Alistair Darling has again "stolen" a number of Conservative party policies and introduced...
Read MoreIs Alistair Darling set to introduce a bank bonus tax?
As we await the announcement of Alistair Darling's pre-budget report, expected at 1230 GMT, there are growing rumours that he has decided to include a 50% bank bonus tax in his plans for the short term. It is believed that a 50% levy on bonuses above £20,000 year will be introduced and payable by the banks in question. However, is this a political move or a revenue raising situation? There is...
Read MoreWhen did you last complain about your bank?
Even though the UK financial sector touches all areas of our lives, it seems that very few people in the UK have actually followed through with their complaints regarding financial investment, financial services and the financial sector as a whole. Recent figures from the Financial Services Authority (FSA) show that while having record complaints passed to the regulator, more and more people are h...
Read MoreRBS Management looking to longer term
Despite the fact that Royal Bank of Scotland, soon-to-be 84% owned by UK taxpayers, was the largest bank in the world just two years ago, the company has seen an amazing about turn in its fortunes. Even just a few months ago the UK government had been suggesting the current 70% stake in the operation could be sold to a third party in the short-term and allow taxpayers to reduce their the liability...
Read More