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Government admits it may take four years to balance books

The UK government has today admitted it may take four years to balance the UK's public finances amid concerns that the authorities have plans for further budget cuts. Despite the fact that many departments will be asked to cut their budgets by 25% this may only equate to 6% per year for the next four years.

Nick Clegg, Deputy prime Minster, also points out that the Labour Party had already proposed cuts amounting to 4/5ths of those suggested by the coalition government in an attempt to fight back against opposition criticism. While there's obvious concern within the UK consumer and business arenas regarding public-sector spending cuts and tax rises, in reality the coalition government has no choice but to cut back on spending and increase taxes.

The government has also acknowledged that the next few years will be relatively difficult for the UK economy amid signs that many now fear a potential double dip recession. Each day we seem to see a softening of previous confidence in the UK economy by economists and recognised economic authorities. However, there is some good news on the horizon with the suggestion that the UK economy is likely to outperform G7 partners in the third quarter of 2010.

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