Are conditions right for a UK economic revival?
Despite the fact that more and more economists believe that the UK economy is on the verge of recovery, are conditions right for a strong recovery in the UK economy?
In simple terms when you look at record UK government borrowing, subdued mortgage lending, high unemployment, inflation springing back to life and record low interest rates having little impact upon the economy, it is difficult to see how this could be in any way described as perfect conditions. The truth is that there are signs of partial recovery in certain areas of the UK economy, with the property sector more prominent than most, but underlying demand and confidence in the UK economy is still very fragile to say the least.
The UK government will be looking to place as much gloss as possible on the potential economic revival as we approach the election and it will be up to voters to decide what they believe and what they really feel about the prospects for the UK in the short to medium term. Has Gordon Brown done enough to support and rejuvenate the economy or is it time for change with the relatively new kid on the block, David Cameron?
Share this..
Related stories
Toyota set to recall 437,000 Prius hybrid vehicles
After days of rumours it has been confirmed that Toyota is to recall 437,000 Prius hybrid vehicles amid concerns about the car's software and how it reacts to breaking on slick surfaces. While not all Prius hybrid vehicles will be recalled, the announcement will affect around 8,500 vehicles in the UK acquired before January 27. This is just the latest in a long line of damaging headlines about Toy...
Read MoreRecent rate rises shake Brits' security
People in the UK have told Lloyd's TSB's monthly survey team that they expect a further hike in the interest rate in 2007.According to Lloyd's Corporate Markets poll, 77 per cent of Brits expect another creep in the interest rate, while 13 per cent believe the rate will stay the same and an optimistic seven per cent expect the rate to fall.Because of expectations of a higher interest rate, more pe...
Read MoreRichard Branson calls for overhaul of UK rail franchises
Amid concerns that many of the UK rail franchises are on the verge of collapse, Sir Richard Branson, owner of Virgin Trains, has stepped into the mix to suggest that the government needs to address the immediate problems. He believes strongly that the government needs to extend the length of current franchises in order to allow operators to look further ahead and invest significant capital for the...
Read MoreNorthern Rock shares plummet
Shares in the mortgage lender Northern Rock have plunged by as much as 23 per cent, and the chancellor, Alistair Darling, has authorised the Bank of England to provide the firm with emergency funding.Customers are being reassured that their savings and home-loans will not be affected, but branches have still seen queues of worried people trying to withdraw their money, and staff from rival banks h...
Read MoreAlistair Darling set to ask banks for disaster recovery plans
Amid signs that the UK government is going down the same road as the US government and significantly increasing its control of the UK regulation environment, Alistair Darling is said to have ordered the Treasury Department to redraft basic banking rules in the UK. In a follow-up to a suggestion late last year, the Chancellor of the Exchequer is to ensure that all British banks have a plan for thei...
Read More