As the UK’s economic growth is struggling to get anyone’s hopes up, the chancellor of the Exchequer, George Osborne, is attempting to gain support from around the world for his strong stance on deficit reductions.
Hard decisions on spending
The chancellor in an article in the Financial Times, which was co-authored with the finance ministers of Australia, Canada, Singapore and South Africa, has urged for “hard decisions on spending, entitlements and taxation in countries with large budget deficits”.
In the view of George Osborne, the article highlights a slowly building international feeling that the UK government has got its financial stratedy correct. The article was written after a conversation between George Osborne and Tharman Shanmugaratnam, Singapore’s finance minister.
“It has been true for some time that those critics [of the government’s financial policies] are out of line internationally. This is further proof of that” said a Treasury aide. This came after Mr Osborne had said that Labour preferred a much more reduced rate of reducing debt, and their view was a lonely one when the whole world was brought into the equation.
The Chartered Institute of Personnel and Development (CIPD) together with KPMG put together a survey which revealed that figures show that more employers are looking to reduce the number of employees instead of increasing their numbers during the next year. CIPD policy advisor, Gerwyn Davies, has stated that the recent news regarding “employment revival may become one of an employment relapse”.
America plays an especially important role in restoring confidence
There is a chance that the article may annoy United States and Eurozone politicians. They have come under direct criticism for their policies in the current climate and the article will not help.
“America plays an especially important role in restoring confidence. Credible fiscal commitments are in its own interests and the world’s” ministers have said.
It is well known especially from the nation’s population that the UK’s financial recovery continues to struggle and the reality is that a major side effect of the cuts enforced by the government was that confidence in businesses dropped and it has not recovered.