UK Return to Recession

Britain is on course to head back into recession early next year, the Organisation for Economic Cooperation and Development announced on Monday, warning that the UK Government may have to relax its austerity programme to encourage growth.  In addition to the OECD report, figures held by the Office for Budgetary Responsibility have been described as "shocking".

The economy has been weakened due to public spending cuts, a weak export market and falling demand.  According to the report, unemployment could rise to as much as 9%, but further economic deterioration could be prevented if the Government adopts some short-term fiscal measures, such as limiting public spending cuts.

Although the Government this week announced in the Autumn Budget Statement new measures to promote growth and reduce youth unemployment, many of those on the lowest incomes will be hardest hit to pay for them, as more elements of working tax credits are frozen.  

Source:  the Herald

Tags: Policy, Poverty, Welfare