Wednesday, June 3, 2009
UK sovereign debt crisis looms
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.