Wednesday, June 3, 2009
UK sovereign debt crisis looms
UK 'needs emergency Budget'
Britain needs an emergency Budget immediately after the general election as public spending is set to soar to the highest level in post-war history, a leading think-tank has warned. The Policy Exchange has advised the next government that it must be prepared to make radical and immediate cuts to spending plans or face a serious risk of a full-scale sovereign debt crisis. In a new paper, it has also shown that only a third of the impending surge in government spending can be traced back to measures intended to combat the recession, with the rest going on increased budgets for ballooning government departments.
Posted by jack c @ 09:11 AM (835 views)
3 thoughts on “UK sovereign debt crisis looms”
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mountain goat says:
GC I think your wish will come true whether there is a sensible budget or not.
only a third of the impending surge in government spending can be traced back to measures intended to combat the recession, with the rest going on increased budgets for ballooning government departments
Not sure if the Telegraph has its figures right but even if only a third of govt spending comes from bailing out insolvent banks, it is still a third where money goes down a black hole left by collapsing housing equity, as opposed to the usual public spending that gets money out into the economy.
This third leap in govt spending is a leap the economy can ill afford when recession tax revenues are about to fall heavily and more people will need benefits because of job losses. Torygraph complaining about public spending diverts attention from what caused this problem; a housing bubble collapse where the losers get bailed out for being stupid.
general congreve says:
The last thing I want is sensible budget. Let’s hope things the wheels come off completely before the next election so my pot of gold goes to the moon. Go Gordon!!!
mountain goat says:
Scary time warp!