George Osborne’s autumn statement offers little cheer for Brits Debt Consolidation

George Osborne’s autumn statement offers little cheer for Brits

January 21st, 2012 Madeline Minns Leave a comment Go to comments

Chancellor George Osborne made his autumn speech earlier this week, desperately willing the country to believe that things are going to get better.

Whilst the new labour government might have had this outlook in 1997, the coalition is singing a very different tune.

Osborne is enduring a tough time at the moment with the failing economy, mass public unrest and the euro crisis occupying his thoughts.

If the Euro-zone collapses, or even forms a breakaway group, this could have disastrous global consequences.

The Bank of England has warned that the current economic climate is ‘extraordinarily serious.’

Sir Mervyn King, Governor of the BOE said; There are many ways in which the future could play out. Maybe it [the euro-zone] wont break up, maybe it will continue in various forms, but maybe there will still be questions of default.

Whilst households prepare for Christmas throughout the UK, the houses of parliament are preparing for economic meltdown. If the Euro-zone was to break up, the chancellor may be forced to impose austerity measures that families and business would not have seen since World War II.

This news comes as if things aren’t bad enough with wage cuts, pay freezes, job losses, poor pensions and high inflation.

Fortunately, there is some good news. As noted several times in the chancellor’s speech, Britain is able to borrow money on the world markets at 2% compared to economies such as Italy, who face rates of up to 7%.

With more borrowing comes more spending on housing benefits, welfare and the jobless. But as the government splash the cash their budget goes out the window, slashing growth forecasts in the process. This year alone, the UK growth forecast was reduced from 1.7% in the March budget to 0.9% currently.

Falling into debt

Whilst the country is on the brink of another credit crunch, personal finances are taking a serious hit. Debt levels could increase on a grand scale as millions struggle to make ends meet. If you are concerned about your financial situation, finding a suitable debt management programme could help you to overcome your problems.

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