Online financial news

Despite the billions upon billions of pounds invested into the UK economy over the last 13 years the very fact that UK unemployment is now higher than when Labour came to office is a bitter blow for Gordon Brown. When you also consider that more than 50% of the UK workforce now depends upon the state for employment, a figure which is far higher than when Labour came to power, the situation could become more difficult before it gets better.

A number of recent reports are suggesting literally hundreds of thousands of public sector workers will lose their jobs, which will impact upon UK economic growth and could curtail an economic recovery. Despite the fact that all political parties are playing their budget intentions close to their chest there is no doubt we will see significant cost-cutting in the public sector no matter which government is in office.

This would create more friction with the unions and many people are forecasting an enormous increase in industrial action which in itself is detrimental to the future growth of the UK economy. Despite the fact that the UK economy appears to be over the worst, there are potentially more problems around the corner and we must not become complacent.

Similar Posts:

• Postelection spending cuts feared by many
• Will government cutbacks curtail recovery in the construction sector?
• Conservative party rule out tax hikes
• Accept cuts or we’ll target pensions, David Cameron warns unions
• Government announces changes to pension age