What options do the UK government have to refloat the economy?
As we see the introduction of the bank rescue package part two and suggestions of quantitative easing via the Bank of England's operations there is serious concern about the medium to longer term impact on the UK economy. Quite literally the UK government is running out of money and ideas to get the UK market moving again at a time when confidence is low and the banking community seems hell bent on protecting its own assets to the detriment of businesses and consumers. So what next for the UK authorities?
While UK debt is already expected to top £1 trillion over the next two years there were some suggestions in the weekend press that this could double or treble over the next few years. This would be a serious setback for the UK economy and could see the government request additional help from associations such as the International Monetary Fund which we saw happen when a Labour government hit trouble in the 1970s.
While the UK economy of today is very different to that of the 1970s there are serious concerns that this ever-increasing national debt could drag the country to the verge of bankruptcy and take literally decades to pay back. Increased taxation levels have in the past seen a number of high earners leave the UK for a life overseas and this is something which could come back to haunt the authorities.
Share this..
Related stories
Sterling continues to decline against the dollar and other major currencies
As sterling continues to fall in the foreign exchange markets there is real concern with the rate against the dollar down to $1.4715 and down to 84.7p against the Euro. There is real fear that sterling could yet fall further with interest rates likely to decline in the short term (Gordon Brown recently asked for a substantial cut) and the economy set to move into recession over the next few months...
Read MoreFee free bank accounts explained
12/01/2016 From the 1st January this year, the Treasury and the banking industry came to an agreement which means that nine UK high street banks will begin to offer fee-free current accounts. For the first time ever, bank accounts will be truly free to certain people, and they will be able to bank with the knowledge that they will not receive charges and not have an access to any overdrafts, a...
Read MoreStrike Action Moves To A Different Level In The UK
The GMB Union intends to complain to the government and BAA after a trade dispute saw catering staff brought in to man luggage scanners at Stansted airport. The GMB dispute with employer Airfield Services led to 30 members of the Union walking out on a day long strike leaving the airport in chaos. This is when a number of catering staff were transferred to alternative work and, so the Union sugg...
Read MoreIs the UK recession already over?
The Office for National Statistics is this week set to issue a revised figure regarding the performance of the UK economy in the third quarter of 2009. The initial figure showed a 0.4% drop in gross domestic product (GDP) in the third quarter which was much worse than many analysts had expected. However, it would appear that stronger data from the construction industry could well see this figure r...
Read MorePublic sector borrowing accelerates
Britain's public sector deficit expanded by almost £2 billion in March, the government has said.Official figures show the overspend on the Treasury's current budget was £8.5 billion last month, compared to the £6.6 billion recorded in the corresponding month last year.But the Office for National Statistics (ONS) data reveals that chancellor Gordon Brown is still in line with his £35 billion ne...
Read More