Osborne outlines growth strategy
Chancellor of the Exchequer, George Osborne, outlined the details of the governments future fiscal plans in his Autumn statement yesterday.
Osborne was forced to admit that there would be a further two years of austerity which he put down to the problems in the Eurozone and increased world economic instability. This has enabled him to announce a further £23 billion in spending cuts.
The Office for Budget Responsibility has said that the government will need to borrow an additional £112 billion and as many as 700,000 public sector jobs are likely to go.
Osborne downgraded his growth expectations, saying that growth in 2011 is likely to be around 0.9% and next year will be around 0.7%. That is in contrast to the OECD which has said that it expects the United Kingdom’s economy to go into a ‘double dip recession’ next year.
Osborne forecasts unemployment to rise to 8.7% in 2012 and the OECD has predicted that the jobless total will be at 9.1% by 2013.
On the positive side the Chancellor announced a package of ‘credit-easing’ initiatives to spur growth which amount to around £40 billion in government expenditure. He had been criticised for not having a growth strategy by opponents and business alike and this is his answer.