Financial Cuts to Improve UK Economy?

As the US announced the official end of the recession within its perimeters a couple of months back, the UK too, seems to be on the verge of announcing the same. However, like a probable Tsunami victim, the financial condition of the former imperial bigwig is yet to recover as much ground as it has lost during the Economic Slowdown.


This has prompted the new David Cameron-Nick Clegg government to introduce more financial cuts, which they say will help put the spring back into the step of the British economy in the near future. The spending cuts, proposed by many chartered accountants in London as harsh and perhaps more detrimental than helpful to the economy, will be around 25% over a period of 4 years from April 2011.

Public sector borrowing might hit the unbelievably whopping mark of $238 billion, with the main core of the cuts being focused on defense and public welfare. This too has aroused concerns among the Brit politicos, who say the war on terror as well as the still unsteady and weak financial condition of the citizens will take a bad hit from the same.

Whether these measures success in giving the jet-pack of the UK economy it’s ignition fuel, only time can tell. However, for those willing to see a more free role of the public sector in economic spending will be happy with the cuts.

Property markets and real estate liaison agents would not be so – especially as this sector had taken the hardest beating during the Downturn days.