The year has not got off to a particularly good start as the economy continues to bump along the bottom and all the talk is pointed towards the possibility of a triple-dip recession.
However, this remains speculative. Although the government continues to announce initiatives in order to boost the economy they remain ineffective.
Gerald Irwin of Sutton Coldfield based Licensed Insolvency Practitioners and Business Advisers, Irwin Insolvency believes that spending cuts, the continued squeeze on household spending powers and low levels of business confidence have combined to seriously reduce demand. “It stands to reason that if the government is not prepared to address this problem head on other measures thus far adopted have proved futile and merely led to stagnation,” said Mr. Irwin.
What is needed right now is a change in direction, a set of creative and constructive policies that will put demand back into the British economy. Many of Britain’s current problems are the direct result of economic conditions that excessive austerity policies themselves have caused.
Clearly the government should not revert to a spending spree but fiscal policy needs to be set in line with the right underlying assessment of the economic difficulty.