Is it right to encourage consumers to take on more debt?
The UK government has this evening come under fire from the Church of England as the question of encouraging consumers to take on more debt to refuel the economy rises to the top again. This is a question which has been asked by many different observers over last few weeks as the UK continues to drown under a mountain of debt. The reality is that increased government spending has pushed the national debt to £1 trillion and saddled every taxpayer in the UK with an enormous debt which will be recouped in years to come.
As government spending looks set to increase yet further over the next few months the threat to taxpayer's income in years to come seems to be increasing by the day. The next government into power will inherit a balance sheet heavily in debt with the need to replenish funds as quickly as possible. While the Tories would jump at the chance to regain power in the UK they know as well as anybody else that they would be inheriting a nightmare financial scenario. Gordon Brown may yet surprise many experts and fight the next election on his ability to refloat the UK economy which many believe he has ruined.
Share this..
Related stories
Standard and Poors downgrade UK outlook to negative
Renowned credit rating agency Standard and Poors has today downgraded its rating on the UK to negative. This means that the credit ratings agency believes that the UK economy is in danger of weakening in the short to medium term which could lead to UK debt ratings being downgraded. This is a significant blow for the UK government as the authorities will require further funding which will increase...
Read MoreAre foreign mortgage lenders entering the UK market?
While mortgage lending in the UK is down by 26% year-on-year and there has been a marked reduction in the number of mortgage lenders operating in the country, it would appear that foreign mortgage lenders are making a play for the UK market while it is at its weakest for some time. So what is going on?
Official figures show that while mortgage lending is down sharply in the UK on a...
UK government decides to play hardball regarding postal strike
The UK government has today stepped into the breach after peace talks between the Royal Mail and the unions failed and both parties went their separate ways. The government has now shown its hand and is now willing to take on the unions with Royal Mail management also ready to play hardball and reduce the power of the unions within the operation.
Quite simply, this ongoing issue bet...
Headline unemployment falls but what is the real picture?
While the rate of unemployment in the three months to December fell by 3,000 to 2.46 million the actual rate of unemployment remained static at 7.8%. However, there are more worrying developments under the surface which indicate the real depth of the recession and the problems we will have in the short to medium term. The number of people classed as "long-term unemployed" increase by 37,000 in...
Read MoreCould the credit crunch actually save Gordon Brown's political career?
As we head towards the UK general election, which many believe will be a landslide victory for the Conservative party, there is a chance that the UK economy could well recover prior to the election date. In a bizarre quirk of fate it may well be that the low points reached after the credit crunch and the UK recession may well give Gordon Brown his best chance of victory at the next election. If...
Read More