Could UK unemployment hit 4 million?
A report by the Centre for Economics and Business Research (CEBR) has revealed what could become a doomsday scenario for the UK economy. The survey suggests that a combination of the depth of the worldwide recession, the UK recession and the government's handling of the situation could lead to UK unemployment topping 3.8 million!
While there is no doubt that the report is considering a potential "doomsday scenario" there are few people who would argue with the fact that the UK economy is in a mess and UK national debt is rising. The survey also suggests that UK national debt would top a massive £2 trillion before it starts to fall, which would mean tax rises and public sector cuts across the board for years to come. These figures are significantly at odds with the Treasury's projections which show that unemployment should top 2.8 million by 2011 and then start to fall back.
One subject which is back on the agenda, as we approach the next general election, is public sector spending. This is a subject that the Labour Party used to try and paint the Conservative party in a very bad light but one which could backfire dramatically. It has become evident of late that the Labour Party is also considering significant public sector investment cuts and appears to be on the verge of announcing yet another U-turn.
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