Will the UK be set adrift by the G20?
As we covered yesterday, Alistair Darling has pleaded with his G20 colleagues to maintain the ongoing financial stimulus for the worldwide economy. However, there are fears that with the UK lagging behind the likes of the US, Japan, France and Germany we could see the stimulus halted earlier than the UK government would like which could impact upon the UK economy in the short to medium term.
Quite why the UK is lagging so badly behind the likes of the US, Japan, France and Germany is a mystery but there are many who believe it is directly linked to the large levels of debt in the UK even prior to the credit crunch. The UK government has been increasing tax income for many years while investing heavily into public services which have ultimately bled the taxpayer dry in the short term.
Even if the UK economy was to improve tomorrow it will take years to replenish the UK balance sheet and rebuild the financial strength which has been associated with the UK for hundreds of years. While this is not the end of the world for the UK economy there is no doubt the next few years will be a rebuilding process rather than significant growth.
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