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Prime Minister warns of 'Years of pain ahead'
worldtraveller
Posts: 14,013 Forumite
David Cameron has warned that the economy is in a far worse state than previously thought and signalled that Britain faces years of “pain” as the spending axe falls.
The prime minister indicated a sharp downgrade in official growth forecasts and revealed that welfare and public sector pay would bear the brunt of budget cuts.
It is understood that tough measures being considered to help control the £156 billion budget deficit include benefit freezes and cuts in child tax credits. There are also likely to be below-inflation pay rises for state employees on top of next year’s planned freeze.
The prime minister said there would be no “trampoline recovery” of the economy. He warned there was a “serious problem” with forecasts inherited from Labour of robust 3% growth next year.
Cameron said he had not seen the report being prepared by Sir Alan Budd, the head of the government’s new budget watchdog. MPs expect that Budd will scale down the current growth forecasts to somewhere nearer the average predictions of independent economists, who believe next year’s growth will be a sluggish 2%.
The prime minister insisted the figures that the coalition had inherited were wildly over-optimistic. “There were two levels of optimism in what the [Labour] government was forecasting,” Cameron said. “One was trampoline growth of 3% and above, and the second theory was that interest rates would always stay low.
TimesOnline
The prime minister indicated a sharp downgrade in official growth forecasts and revealed that welfare and public sector pay would bear the brunt of budget cuts.
It is understood that tough measures being considered to help control the £156 billion budget deficit include benefit freezes and cuts in child tax credits. There are also likely to be below-inflation pay rises for state employees on top of next year’s planned freeze.
The prime minister said there would be no “trampoline recovery” of the economy. He warned there was a “serious problem” with forecasts inherited from Labour of robust 3% growth next year.
Cameron said he had not seen the report being prepared by Sir Alan Budd, the head of the government’s new budget watchdog. MPs expect that Budd will scale down the current growth forecasts to somewhere nearer the average predictions of independent economists, who believe next year’s growth will be a sluggish 2%.
The prime minister insisted the figures that the coalition had inherited were wildly over-optimistic. “There were two levels of optimism in what the [Labour] government was forecasting,” Cameron said. “One was trampoline growth of 3% and above, and the second theory was that interest rates would always stay low.
TimesOnline
There is a pleasure in the pathless woods, There is a rapture on the lonely shore, There is society, where none intrudes, By the deep sea, and music in its roar: I love not man the less, but Nature more...
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... I hope the 'pain' is spread out as evenly as possible. We've all got to pay for this.0
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Grim, grey, grinding years of austerity lay ahead and soon we'll be well past peak oil and peak food, so the lights will be going out all over Britain while peeps queue for their ration of 'national bread'. Back to the living standards of the 1930s soon enough.
>I hope the 'pain' is spread out as evenly as possible.<
Nope. Ghastly chavs, "seekers", and benefits claimants voting for Labour's handouts caused this, they can take the brunt of the cuts. 'If they will not work, they shall not eat!'0 -
It seems they acknowledge the fact that their premature cuts are going to harm our growth prospects.0
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So far the pain has been completely uneven.... I hope the 'pain' is spread out as evenly as possible. We've all got to pay for this.
Ask anyone who worked in private sectors hit, who have had to take pay cuts. I know mine has been down for several years now.
Ask savers who receive minimal interest now.
It's more a case of spreading the pain out to other areas now.0 -
Thanks for letting me read this great post, keep it up.Good one dude..keep doing nice work0
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[FONT="]Cameron signalled a softening of his stance on capital gains tax, which is due to go up this month from 18% to nearly 40% to help pay for the Lib Dem aim of taking the low-paid out of income tax.
Facing a growing rebellion from Tory backbenchers, the prime minister said he was considering some sort of relief for investors selling assets such as shares or second homes that they had held for a long time. “I totally understand the arguments,” Cameron said.
[/FONT] If I don't reply to your post,
you're probably on my ignore list.0 -
Apologies in advance for source, but £42,000 of the pain would not go amiss here:
http://www.thisismoney.co.uk/news/article.html?in_article_id=502766&in_page_id=20 -
Apologies in advance for source, but £42,000 of the pain would not go amiss here:
http://www.thisismoney.co.uk/news/article.html?in_article_id=502766&in_page_id=2
It really does make you want to weep when you read articles like that, those people have no shame. If they are currently better of being on benefits then the total amount they receive should be significantly less than they would get on minimum wage. They would soon get off there lazy butts and work for a living then (or maybe not).0 -
I think he also said something bout no return to the harsh times of the 80s.0
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lostinrates wrote: »I think he also said something bout no return to the harsh times of the 80s.
That was Clegg, in the Observer/Guardian.“The great enemy of the truth is very often not the lie – deliberate, contrived, and dishonest – but the myth, persistent, persuasive, and unrealistic.
Belief in myths allows the comfort of opinion without the discomfort of thought.”
-- President John F. Kennedy”0
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