Deputy PM issues global economy warning

Nick Clegg, the deputy Prime Minister for the coalition government, has indicated that the global economic situation is beginning to deteriorate further and has promised that the UK government will do more to boost the country’s economy.

Mr Clegg has indicated that the government is able to employ some measures to help protect against the worsening global econimic outlook, although he also added that there is little room for error in any steps they take.

The government are planning to award a priority status to 40 major upcoming infrastructure projects. These projects include the new broadband networks and Crossrail. Mr Clegg also indicated that the coalition’s deficit reduction plan will continue as planned, adding that the suggestion from the Labour party to scale back the spending cuts would lead to ’soaring interest rates and crashing credibility.’

The Deputy PM has indicated that the external pressure from the eurozone debt crisis, the weak growth in the US economy and the rising oil prices have all had a severe impact on the international economic situation over the last 6 months.

The government are set to make some new announcements in the coming weeks regarding the spending plans on the infrastructure projects. Mr Clegg has suggested that these projects are the best steps that the government are able take to make a difference in the short term.

Mr Clegg has indicated that the emphasis will be placed on preventing any setbacks in the delivery of the infrastructure projects. He said: ’Our critics say that all this government is capable of is cuts. That, beyond lowering a few business taxes, reducing a bit of red tape, there is little else we are willing or able to do. That is absolutely wrong. We can do more, we are doing more, we will do more.’

Labour have hit back at the speech from the deputy PM. A spokesperson suggested that contrary to Mr Cleggs statement that they are doing more, he and the Chancellor, George Osborne, are actually sitting on their hands whilst the economy falters.

Andrea Eagle, the Shadow Chief Secretary to the Treasury pointed out that the speech from Mr Clegg only confirms that the government ministers will start work on time and make sure that the projects that they haven’t already cut will be completed on time.

The Labour party have called for a cut in VAT in order to help boost demand and support for new housebuilding projects. They also indicate that a credible growth plan is needed to have a long term impact on the deficit.

The economic growth for the UK has slowed down to 0.2% in the first quarter, leading to suggestions that the economic forecasts for 2011 will be downgraded in the Chancellor’s autumn statement.

Recent unemployment figures have also been released which show that a further 80,000 became unemployed in the three months leading up to the end of July. There are now 2.51 million unemployed people in the UK. hwat the projects that they haven’t already cut will be completed on time.

 

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Retirement Solutions (UK) Ltd are independent financial advisers that specialise in financial products for the over 50s. Visit the web site at www.retirementsolutions.co.uk

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