U.K. Third-Quarter Growth Pace Halves to 0.5%, Institute Says

Spiv_2

From the Telegraph

Chris Huhne suggests that the proposed spending cuts are not "lashed to the mast" and that it "may be appropriate" to alter the plans in the event of a serious economic downturn. The Energy Secretary – who admits that a double-dip recession is a possibility

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http://www.telegraph.co.uk/news/newstopics/politics/8052203/Spending-cuts-could-be-scaled-back-minister-Chris-Huhne-says.html

Masomnia

borntobefree wrote: »

1984R4R - I think you may be right.

Both yesterday's and today's front pages of the FT have suggested massive backpedaling by the coalition on spending cuts (totally at odds with what they have being saying all week at conference). Today's article clearly suggested that many of the cuts won't happen in 2011, same yesterday.

Do you think we might go completely negative Q4?

Not following. All of the cuts were never going to happen in 2011, some were, some weren't. The plan is to erradicate the deficit by the end of the parliament, not next year.

StevieJ

Masomnia wrote: »

Not following. All of the cuts were never going to happen in 2011, some were, some weren't. The plan is to erradicate the deficit by the end of the parliament, not next year.

I don't think they will want to be making cuts just before the next election.

1984ReturnsForReal_2

borntobefree wrote: »

Do you think we might go completely negative Q4?

Depends if people have bought for Christmas or not.

If its neg 4th Quarter more than likely it will be neg 1st Quarter.

Euro gained strength over the pound so exports are going to slow down over time.

& with the Condems telling everyone they are stuffed people will stop, or will have stopped spending so much.


And then we have 750,000 about to lose their jobs in the Public sector & many many losing child benefit & many other losing other benefits like mortgage payments & many other under threat in the private sector not spending because they are worried they will get F ALL from the state if they lose their jobs.

The Condems turned the tap off at the wrong time & they will end up borrowing more than the are saving by the cuts they are making.

Personally I think it just goes to show how easy it is for a bunch of muppets to get a go at running a country.

At least George seems to be getting his figures early enough, which was a major problem under Brown, but I suggest they shut their mouths for a bit in order to save themselves looking like fools (which is what they are) to the general public.

Thrugelmir

StevieJ wrote: »

I don't think they will want to be making cuts just before the next election.

Just like all Mr B's budgets. The details will be announced now ( in the small print) but won't impact for years to come. So much will go unnoticed by the average punter.

Thrugelmir

1984ReturnsForReal wrote: »

& with the Condems telling everyone they are stuffed people will stop, or will have stopped spending so much.

Define spending. Much spending is wasteful and of no economic benefit to UK plc.

1984ReturnsForReal_2

Thrugelmir wrote: »

Define spending. Much spending is wasteful and of no economic benefit to UK plc.

All consumer spending has an immediate knock on effect to the receiver & the money in circulation.


But I agree, most does have a loss effect for the UK.