The UK economy officially came out of recession this week, with a less than impressive 0.1% growth announced on Tuesday. The Government celebrated the news, arguing that without the financial stimulus that they have provided, we would have witnessed higher unemployment, more house repossessions, and more business failures.
The oppositition contend that the recovery is weaker than that experienced by our European counterparts and that the country is swimming in a sea of debt because of the profligate spending spree that has been sanctioned since the economic downturn began eighteen months ago.
Whoever you agree with in this particular debate the real question that needs to be answered is ‘what next?’
At DPIB’s first property & enterprise forum yesterday, our two excellent speakers, Dave Acland from Begbies Traynor and Stewart Case, Moore & Smalley, admitted that the future economic picture is uncertain, as neither the Labour or Conservative Party have clearly outlined what policies they will implement following the next General Election, which will surely now take place in May (not March as some predicted over christmas).
Though the Tories are tough on rhetoric as they advocate an accelerated paying off of the deficit, Labour’s warning that too deep a cut in public expenditure could destabilise a fragile recovery has been acknowledged as credible, at least in part, by Conservative Shadow Minister and former Chancellor Ken Clarke.
Without a clear vision from either of the main contenders the financial markets, the international financial community and those who earn a living from predicting what our economic future holds will remain frustrated and lack the confidence to recommend UK PLC as a safe investment bet in 2010 and beyond.
The sooner we get the election out of the way the better.
Tags: Conservative, DPIB, Labour