When will consumers benefit from the upturn?
Whether or not a recent report into the UK economy, suggesting that the recession is well and truly over, is correct or not, many consumers are asking when they will benefit. An increase in industrial output has seemingly signalled the end of the recession although many people will delay their interpretation of the figures until we receive further good news. But when will consumers start to benefit?
Unfortunately, it will take some time for any recovery in the UK economy to filter through into the employment market and ultimately consumer's pockets. Then there is the fact that the UK government has borrowed hundreds of billions of pounds to fund various rescue packages for the economy, funds which will have to be paid back in due course. As a consequence it is highly likely that UK consumers will see a significant increase in their taxation rates, both directly and indirectly, as the UK government looks to "balance the books".
However, in the short term, as we approach the next general election, the UK government may well be forced to delay any significant tax rises until the next Parliament to give itself even the slimmest chance of being victorious.
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