Standard & Poor's (S&P) ratings agency reassessed its position on Britain to 'negative' from 'stable' as the disturbing news that public debt seems as some predicted to be spiralling out of control.
The news makes grim reading for all as the UK’s government refusal to even consider capping public spending when many feel the medium and long term recovery is a long way off unless government not only caps but cuts public sector borrowing.
S&P’s downgrade from stable to negative for the UK economy comes on the back of IMF figures which suggest a similar analysis.
S&P evaluations carry weight as one of the two main world ratings agencies. It has also been suggested the speculation on the timing of a general election does little help as the uncertainty of how the economic misery will be rectified is in the balance as the Conservatives solution seems very different to the Labour governments stance.
Astonishingly those who intimated at meltdown and were accused of alarming the UK public may yet prove to be right as S&P said in a statement "Even factoring in further fiscal tightening, the UK's net general government debt burden may approach 100 per cent of GDP (Gross Domestic Product) and remain near that level in the medium term".
Official figures released since the agencies report show a record £8.5 billion high in April for British public borrowing. The problem is Britain seems to be breaking all kinds of economic records regrettably all are of the negative.
The recessions grip on the UK is shown with tax revenues falling, rising unemployment and other negatives forcing up the benefit costs, whilst the public sector somehow? continues to grow at an alarming rate as does their benefits and ludicrous, ridiculous and unaffordable pension scheme.
Until someone has the ’balls’ to address this problem the UK economy will continue to stagnate, and it is quite possible that much of the government’s borrowing problems and its effect on the UK economy could be short-lived if the public sector entered the real world, but that does seem highly unlikely under this, or indeed a Cameron led government.
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