A shot in the arm
The UK Chancellor George Osborne is today preparing his Autumn Statement, an update on the state of the UK economy. He will also outline plans to boost the sluggish growth, which the OECD has warned is likely to slip back into recession.
The economic think tank has predicted a 0.03% contraction in the UK economy this quarter, followed by a further 0.15% in the first three months of next year. Bank of England Governor Mervyn King has echoed these predictions, forecasting that the UK’s growth was likely to be flat as the eurozone crisis threatens the UK’s recovery.
Mr Osborne’s statement will include an update and also his response to the forecasts of the Office for Budget Responsibility. It will also outline the plans that he intends to implement to tackle the problems. Some details of credit easing, youth employment schemes and infrastructure investment have already been unveiled. Further schemes including cuts to welfare and increased childcare places, are also expected.
Photo credit: See Li