UK government under pressure over spending cuts
The UK government has today come under serious pressure from the Institute of Directors and Confederation of British Industry who have called for an immediate reduction in spending plans from the UK government. The comments come at a time when the UK government would appear to favour tax increases as opposed to investment spending cuts, something which the business arena is growing more and more concerned about.
There is no doubt that the £178 billion budget deficit expected in the current tax year needs to be addressed sooner rather than later but whether the UK government will be brave enough to push forward with cuts prior to the election remains to be seen. It is also worth remembering that the British Chamber of Commerce only a few days ago reigned in its forecast for economic growth in 2011 from 2.3% to 2.1%. Whether these are just short-term adjustments on the long road to recovery remains to be seen but there is concern about how the UK government will address the financial constraints before it.
What is becoming more evident is the fact that the UK government is at a crossroads and needs to address the budget deficit and the financial situation in the UK as soon as possible. Whether we see increased taxes or investment cuts, or a mixture of the two, we need to see action sooner rather than later.
Share this..
Related stories
Will the quantitative easing program make a profit?
The Bank of England is still operating the quantitative easing program with many suggesting that the £175 billion already put aside could well be increased in the short to medium term. In simple terms, the scheme allows UK banks and UK financial companies to "swap" various assets for cash in order to increase liquidity and hopefully provide a more stable base for future transactions.
Read More
Government announces help for those in tax reclaim debacle
The UK government has today stepped forward to confirm that those sent tax demands for figures under £300 will have them waived and those owing larger figures will have three years to pay it back in full. This comes after a number of Conservative, Labour and Liberal Democrat MPs stepped forward to suggest that those on lower incomes were set to suffer the greatest hardship because of problems wit...
Read MoreIt is payback time for Tony Blair?
Only a few days ago Tony Blair was the unofficial favourite to take on the as yet undefined post of EU president but this evening he appears to have been the victim of a stitch up and his hopes of grabbing the top spot are fading rapidly. Only this afternoon Gordon Brown confirmed that he had put Tony Blair forward as the UK government's choice for the EU presidency post although this evening Fran...
Read MoreCBI backs welfare cuts
The Confederation of British Industry (CBI) has today come out in support of the UK government and plans to cut welfare and social spending in the UK. This is a very controversial area of proposed budget cuts and has prompted unions around the UK to announce significant strike action which could effectively paralyze the UK in the future. So why is the CBI backing the UK government? The CBI beli...
Read MoreLord Turner defends his Tobin tax speech
Lord Turner has today defended his recent speech in which he called for a tax to be charged on all financial transactions and claimed that, in a number of instances, the UK banking sector was "socially useless". Lord Turner's recent comments attracted very different opinions from across the globe and the financial community and despite the fact that this particular subject is outside of his remit...
Read More