RSS

UK economy 'to be hit for 20 years'

Jan 29 2009

The UK economy will experience the worst recession since World War II and government debt will stay at pre-crisis levels for 20 years if taxes are not raised, new reports show.

Figures from the International Monetary Fund (IMF) reveal the UK economy is expected to decrease by 2.8 per cent this year, which is worse than the two per cent average estimated for other advanced nations.

Olivier Blanchard, chief economist of the IMF, says the organisation now predicts the global economy will 'come to a virtual halt'.

The financial group has downscaled chancellor Alistair Darling's prediction that the UK economy will bounce back by 1.5 per cent in 2010, estimating a recovery of just 0.2 per cent.

It comes as the Institute for Fiscal Studies says the government needs to raise an extra £20 billion to repair public finances.

The organisation states taxes should be increased or spending cut in order to find the money, as currently the UK's government debt will remain at high levels for 20 years.

Comments

There are currently no comments on this article

Barclays Business Start Up Account

Everything you need in one place from help with planning to getting more customers, to FREE seminars and a credit checking service to help you get paid quicker. Plus, up to 2 years FREE banking (conditions apply). Apply online

Grow your business with factoring, an alternative to business loans

Balance your cashflow with factoring and use the funds to grow your business. The more you invoice the more you can borrow, no need to re-negotiate with the bank. Compare factoring quotes online.

Barclaycard Commercial – Visa Gold and Platinum Credit Cards

Great benefits including Travel Accident Cover, 90 day Purchase protection, extended warranties and cardholder misuse insurance. Plus enhanced business travel insurance for Platinum cardholders. Get up to 56 days’ interest-free credit, when bills are paid in full and on time each month. Also enjoy exclusive discounts in association with Visa, the AA, Rymans, Reed Learning and Daisy Telecom. Find out more.

Would you hire someone over 60?





Site map

« Expand to view
Powered by Wide Area: Content Management for Publishers