UK economic growth falters
Economic growth in the UK economy for the first quarter of 2010 has been confirmed at 0.2%, a figure which is that expected by analysts. The vast majority of economists had been expecting an increase of 0.4% over the three-month period, similar to the final three-month period of 2009, but were sadly disappointed this morning. This latest announcement casts further doubt on the strength of the UK economic upturn and is also something of a bitter blow for Gordon Brown and his hopes of re-election.
However, this has not stopped Gordon Brown from going on the attack this morning with a suggestion that the Conservative party's partial clawback of the increase in national insurance could put the recovery of the economy in jeopardy. On the other side of the coin this has again given the Conservative party the opportunity to question Gordon Brown's record on the UK economy and place in further doubt his role in a future government.
Despite the fact that hundreds of business leaders from the UK have given support to the Conservative party plan to reduce the national insurance increase the UK government is adamant this is the way forward. An increase in business operating costs will ultimately impact upon the ability of businesses to take on new recruits, which will surely push unemployment higher and higher?
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