Has the UK economy been structurally damaged?
As the full extent of the UK economic downturn and the damage this has had upon UK public sector finances becomes more evident there are concerns that the structural damage to the UK economy could last well into the future. We has seen a massive change in the make-up of the financial sector and the excessive risk averse nature of current bank policies is impacting massively upon the small, medium and large business arenas. So when will the UK economy revert back to normal?
Those who believe that the economic troubles of today are nothing but a repeat of the boom and bust times of years gone by will be sadly mistaken. The UK economy which we see today is very different to the one we saw two years ago and indeed the UK economy in two years time will be very different again. How long these changes last remains to be seen but the repercussions of the taxpayer led bailout of the UK banking arena will reverberate for many years to come.
Many UK businesses, relatively strong but possibly in need of short-term finance, will struggle to survive over the next two years and failure rates will rise again. Even if it looks as though the worst is over there are many issues which have yet to rise to the surface.
Share this..
Related stories
Did Tory voters get what they wanted?
There are many policy differences between the Conservative party and the Liberal Democratic Party and indeed a number of prominent Liberal Democrat MPs are still unconvinced about the makeup of the coalition. However, when you bear in mind that the Conservative party gained by far and away the largest share of the popular vote are Tory voters getting what they expected? There is growing dismay...
Read MoreRight Wing Think Tanks Slams Northern Cities
A right wing think tank has slaughtered the cities of northern England even going as far as to suggest that those from the area should move to the south east of England to further their careers and improve their employment prospects. Can this be true? Or is this yet another example of the north south divide?
To suggest that literally millions of people should pack their bags and he...
UK unions want rail network back under government control
In what is fast becoming a government v union battle of wills, it has been revealed that the unions want the UK government to maintain control of the former National Express rail franchise, the East Coast main line.
This is the rail franchise which National Express effectively gave back to the government because of increased losses and the impact it was having on the company's balan...
Honda staff agree 3% pay cut to save jobs
It has been revealed that workers at Honda's Swindon factory have agreed a 3% pay cut in order to save nearly 500 jobs at the plant. The deal was brokered by the Unite trade union and sees the package run until March 2010, although significantly, managers have agreed to take a 5% pay cut with all workers now entitled to an extra six days holiday a year. While the deal is still to be voted on by tr...
Read MoreMervyn King Fires The First Warning Shots of Recession
Mervyn King, the governor of the Bank of England has fired the first warning shots that the UK is heading for a recession. In a very honest assessment of the UK economy he suggested that the country is in a worse situation than at any time since the Second World War. However there was more doom and gloom to follow....
In line with the views of many experts in the City he has confi...