Mervyn King warns next government of tough times ahead
Mervyn King, the governor of the Bank of England, has today suggested that the next UK government would have to make so many controversial cuts in public services that it would be potentially unelectable for decades to come. There is a growing concern that the next UK government could be left holding a poisoned chalice with large-scale public sector investment cuts, job cuts in the public sector and tax increases all set to kick in over the next parliamentary session.
It is difficult to get across how dire the UK economy is at the moment and how much debt the UK government has built up over the last few years. This is a country which now owes trillion, this is a country with a budget deficit of billion and a country which will pay billions of pounds in interest on debt for years to come. Against this backdrop the UK economy is struggling to pull free of the recession, unemployment is set to reach 3 million and we have the likelihood of a collapse in the Greek economy.
All of these issues have come together to create a nightmare scenario for the next UK government, whoever that may be.
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