Jump to content

UK retail sales increase. A further indication that UK has exited recession


Recommended Posts

Hmmm, a bit of perspective required:

 

A recession this deep should not have happened. It's been deepened by the imposition of arbitrary cuts and an abject failure to put any growth plans in place. Even if we discount the idea that we could have borrowed to stimulate the economy then where are the Chancellor's supply-side measures?

 

The annual deficit was only cut by 25% largely because of a one-off fiscal boost caused by the Treasury taking the assets of the Royal Mail pension scheme. In return taxpayers are now on the hook for an unfunded pension scheme. Royal Mail pensions were previously funded through the assets of their fund. Now those pensions will be funded from general tax revenue year after year. A nice little problem for future generations just so Osborne could pretend for one year about a 25% deficit reduction.

 

That said, if there are positive signs of recovery that is great. I think we're seeing a very slow and unconventional readjustment after what has after all been a very unconventional financial crisis.

Link to comment
Share on other sites

Once upon a time there were three bears

 

http://www.telegraph.co.uk/finance/economics/9489191/Surprise-rise-in-UK-borrowing-as-corporation-tax-falls.html

 

Borrowing so far this year, excluding a one-off boost after assets from the Royal Mail's pension fund was transferred to the Treasury, is £44.9bn, £9.3bn higher than a year ago.

 

;)

Link to comment
Share on other sites

We won't have 'growth' as we've known for the last 20+ years as it has been almost debt based, this was on the back of cheap energy, mainly oil, now the cheap oil has gone and having to get it from more inhospitable places, the price will remain high. The recent energy price rises will make household budgets being squeezed even more especially has we now are entering the time of increased energy usage.The UK is now and has been for a few years a net energy importer.

As I1L2T3 has said the deficit reduction is mainly due to the Royal Mail pension fund shift, politicians now have only one option left, print money, which is what is happenening on a monumental scale, but each bout of 'QE' has a shorter impact than the one before, politicians of all hues know this but the alternative is very painful, not that it matters though as politics nowadays is a short term business, and this lot will have gone and it will be left to someone else, it's just a case of being able to say 'it didn't happen on my watch.

Regards, acman.

Link to comment
Share on other sites

Archived

This topic is now archived and is closed to further replies.

×
×
  • Create New...

Important Information

We have placed cookies on your device to help make this website better. You can adjust your cookie settings, otherwise we'll assume you're okay to continue.