Government's strategy for recovery under fire as UK returns to recession
Double dip has arrived – and Osborne is running out of escape routes
Pressure is mounting on the Coalition to reverse course on its strategy of spending cuts after the British economy officially slumped back into recession in the first three months of this year. Economists warned that George Osborne's plan for deficit reduction will damage any recovery over the coming years, with 90 per cent of the Chancellor's planned cuts still to be enacted.
There were signs yesterday that the Coalition's united stance on spending cuts was wavering. The former Liberal Democrat Treasury spokesman, Lord Oakeshott, who is close to the Business Secretary Vince Cable, described the cuts scheduled for this year as "self-harm". He said: "Five per cent more cuts are the last thing we need while the economy is flat on its back – that would simply be self-harm." He called for the Coalition to instead borrow more using the UK's record low interest rates to fund an ambitious national home-building programme...
/... http://www.independent.co.uk/news/uk/politics/uk-in-recession-where-is-osbornes-plan-b-7679248.html
There have been murmurings about a forthcoming 'surprise move' both market- and policy-wise in the Eurozone and perhaps wider Europe..
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