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JOHN DOE

UK Economy

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From the Financial Times,

George Osborne, the chancellor, will be forced to admit that the black hole in UK public finances has increased by almost £30bn, requiring the government to impose years of further austerity on the public sector.

His revised forecasts, to be spelt out in his autumn statement on Tuesday, have resulted from the independent Office for Budget Responsibility’s downgrading of its estimate of Britain’s economic potential over the next few years.

More

In his March budget, the chancellor projected a current structural surplus of £6bn for 2014-15. But he will now have to concede the position will be £30bn worse in that year.

The OBR’s revised outlook will move the official forecasts into line with those of others, such as the Organisation for Economic Co-operation and Development, which on Monday said the economy was already in recession. It also predicted Britain’s underlying government borrowing was set to be worse in 2013 than in Europe’s crisis-hit economies: Italy, Spain, Portugal, Ireland and Greece.

Robert Chote, chairman of the OBR, made it clear in September he was minded to cut the official estimate of the potential speed of recovery because productivity had grown so slowly.

Interactive: The UK economy in context

Two more years of weak productivity growth would increase the structural deficit by close to £30bn, according to an FT analysis of the public finances, breaking the government’s fiscal mandate to eliminate the structural deficit within five years. Government insiders accept the FT’s figure is close to the number the OBR will publish today.

Mr Osborne insisted at the weekend that he would still hit his deficit rules, but to do this he will extend the public spending cuts beyond 2014-15, when they are scheduled to end, and shift spending from day-to-day items to capital spending.

The Treasury put a positive gloss on this switch on Monday, saying it was prioritising infrastructure.

Despite the dire economic forecasts, ministers hope that sweeteners to voters will soften the blow, with motorists likely to benefit from a delay in a planned rise in fuel duties.

Treasury officials are hoping that the public blame external circumstances and the government’s poor inheritance for the sharp downgrade in the economic and fiscal outlook. Following OECD forecasts which showed growth of only 0.5 per cent in 2012, compared with the March Budget forecast of 2.5 per cent, a Treasury spokesman said the UK was not immune from international events.

Sir Mervyn King, Bank of England governor, added to the gloom when he told MPs: “We are still deep in a financial crisis with weak output and we are a long way from getting back to normal.”

Labour is planning to use the autumn statement to renew its attack on austerity, which it blames for the stalled recovery. Ed Balls, shadow chancellor, said: “Families and businesses in Britain can’t afford to wait for things to get worse before the government realises its plan to cut spending and raise taxes too far and too fast isn’t working”.

we're all facked

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OBR breaking it down on bbc news right now

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none of these stats mean shit to me. keep bombing and sticking your biz in other countries

that will help the economy.

cant wait for this con lition to self implode.

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Conservatives stay back dooring money.

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2MORO GONNA BE A MADNESS FOR REEL DOWN CENTRAL

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Brazil overtakes UK as sixth-largest economy

UK relegated to seventh place in world league of leading economies in 2011, according to team of economists

Brazil has overtaken the UK to become the world's sixth-largest economy, according to a team of economists. The banking crash of 2008 and the subsequent recession has relegated the UK to seventh place in 2011, behind South America's largest economy, which has boomed on the back of exports to China and the far east.

Russia and India are expected to benefit from a surge in growth over the next 10 years and push the UK into eighth place. Like most economies, India is struggling with high inflation and slowing growth, but its highly educated workforce and skills in growth areas from IT and services to engineering will push the economy into fifth place. After a decade of selling oil and gas to Europe and other parts of Asia, Russia will be at number four.

The only compensation for ministers concerned by Britain's relative fall is that France will fall at a faster pace. Nicolas Sarkozy can still boast that France is the fifth-largest economy behind the US at number one, China, Japan and Germany, but by 2020, the Centre for Economics and business Research (CEBR) forecasts it will fall past the UK into ninth spot. Germany will also slip to seventh place in 2020.

CEBR chief executive Douglas McWilliams said: "Brazil has beaten the European countries at soccer for a long time, but beating them at economics is a new phenomenon. Our world economic league table shows how the economic map is changing, with Asian countries and commodity-producing economies climbing up the league while we in Europe fall back."Europe is expected to suffer a "lost decade" of low growth following a credit binge over the past 20 years. Paying back debts over a short timescale will restrict growth and prevent many countries, including the UK, from clawing back output lost in the banking crash for many years

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BRICS...BRAZIL, RUSSIA, CHINA, INDIA, SOUTH AFRICA.

none of these nations needed to colonise, plunder, teef, rip off, and enslave nearly a billion people before getting their monies up.

(apart from SA which was just ruled by daemonz, and daemonz still control their economy)

just look at that. yet that cameron and hauge c*nt keep fraffing around the world u would think UK is like No:2.

cunts

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http://www.bbc.co.uk...siness-16332115

that table looks peak for the old powers

america is still holding no.1 spot

\

lool

the telegraph comments are SALTY

http://www.telegraph.co.uk/finance/economics/8977834/Britain-loses-spot-as-sixth-largest-economy-to-Brazil.html

"How much does Brazil donate in foreign aid, disaster relief etc? Must pop off to worlds top ten beggars, murders, slums etc"

"If India moves up to 5th place does that mean we won't have to send them anymore foreign aid ? Don't hold your breath,they'll probably be plenty of do-gooders(aka nutters) still insisting we give our money away to countries that are richer than we are. I suppose it'll help them with their space and nuclear programmes."

" This is disgusting! Aren't they in a 'Free Trade Area'? Do they have extensive rights for their workers?: maternity/paternity leave, working hours directives etc.? What about a Schengen agreement? Why can't our welfare claimants go to Brazil and get free housing and benefits over there? Either the EU sorts this out or we should get out and be like Brazil."

shat up

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fuck money get bitches

good idea , i like it !

.g.gif

:rofl:

AFVDD\ZWTF

CAUGHT ME OFF GUARD

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yo, whos working tomorrow? is it a bank holiday again?

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It is true though, there are far more extremely poor people in them countries. With regards to Brazil, the white people will see more of the money tbh. The Millionaires and Billionaires of India don't care about the poor people, they only care about themselves. Indias "Cast" system is one of the dumbest things I've ever heard of.

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yeh yeh. thats all just western credit debt ridden moaners complaining.

yes there is proverty, but there is also a growing middle class that is the driving force of any economy

the middle class in the west is shrinking and debt ridden

in 20 yrs the UK could be like them countries... very rich, very poor, tiny middle class.

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The rich will get richer, the poor will get poorer, and the middle will stay the same.

This is Great Britain.

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Yeah, I agree (With Venom).

Housing has fucked us over too, which is also reducing our middle class.

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the middle class here are not untouchable tbh

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The economy won't be fixed in our generation.

Wake up and realise that.

We're paying the price to stabalise things for our kids and grandkids.

We have to take the L on our lives on this one.

£30bn can't be retrieved legitimatly in even measures that encorporates individual fairness within 60 years.

We're all living in debt, there isnt even enough businesses out there to offer enough £20k jobs, that's the bare minimun we could survive profitably off if you were wise i.e no iphone contracts, no sky subscription etc.

Graduates jobs are reliant on people up the top of the food chain retiering so everyone can move up a notch, what do they do? up the retierement age.

It's like a fat person sitting on a cusion and another fat person sits on his lap, the 20-30yos this year are under that cusion.

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lol@ middle class staying the same.

this man doesnt know what he's talking about.

or @ least doesnt know any middle class people

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Trust.

If the rich are getting richer and the poor are getting poorer then the gap between the two is going to be greater?

the gap between the two = middle class

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Lol.

Before I start, what do you consider "middle class"?

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