When David Cameron’s coalition government first announced its plans to dramatically cut public spending many people feared that this move would stunt the UK’s already fragile economic recovery. However, as the government prepares to announce its Emergency Budget on 22nd June amid fears that it will include further spending cuts, VAT increases and Tax rises, it seems that –surprisingly – the UK’s economic recovery is still heading in the right direction.
The latest figures released from the Office of National Statistics reveal that economists are expecting that the UK’s economy will grow by an estimated two per cent. This figure has slightly increased from previous forecasts, indicating that while growth remains fragile, the UK’s economic situation is improving, however marginally.
Ryan Atherton, chief economic advisor to the Federation of Private Enterprise comments;
“ While these figures are undoubtedly positive, it must be made clear that in the wake of public spending cuts and VAT rises, the UK’s economy is under more pressure than ever before.”
“From the feedback we have received from our members, it is clear that most small business owners are supportive of the government’s endeavors to reduce the budget deficit. However, as public spending has been cut they are also aware that there is increased pressure on them to stimulate increased economic growth. Therefore, they are calling on the government to recognize this in its Emergency Budget and provide them with the best conditions possible to improve their turnover.”