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Despite threatening to introduce one of the strictest regulatory environments in the U.K.'s history, Alistair Darling has this evening suggested he would go further if UK banks do not agree to...
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Friday 5th December 2008
While Alistair Darling has welcomed the 1% reduction in UK base rates by the Bank of England, he has also reiterated what many people now believe, that interest-rate reductions alone will not pull the UK out of recession. He has called for further increases in fiscal stimulus and as he suggested earlier in the week, the recent £20 billion package may well need to be increased and further revolutionary strategies brought into play.
The cost to the UK taxpayer has grown substantially over the last few weeks and many believe it is now getting out of control. UK government debt stood at around £500 billion prior to the economic slowdown and is set to hit over £1 trillion in just 12 months. This will see the UK taxpayer being milked for many years to come as the governments of the future look to replenish and restore financial credibility.
As well as the increase in UK governmental debt there has also been a massive increase in the cost of servicing the debt which alone will be more than last year's budget as the credit rating of the UK as a whole is put at risk. Quite where this spending will stop remains to be seen but as yet the economy has not responded in the expected manner. |
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