Budget 2010 - Maintaining a stable economy
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Issued 24 march 2010
The Government’s long-term economic goal is to secure and maintain economic
stability, in order to achieve its objective of a fair society where there is
security and opportunity for all.
In 2009 the global economy contracted for the first time in 60 years,
following a worldwide financial crisis. All countries have been affected and the
impact has been felt by households and businesses across the UK.
Government support for the economy along with action from the Bank of
England, such as interest rate cuts, has helped ensure that the impact of the
recession on employment and repossessions has been less severe than independent
experts had forecast. The latest economic data shows that the UK economy
returned to growth at the end of last year.
In recent months many risks have reduced, but the global economy remains
fragile. While there are signs that the economy and financial markets have
stabilised, all economic forecasts remain subject to a high degree of
uncertainty. The Budget sets out the Treasury’s forecast that that UK economy
will grow by 1¼ per cent this year, and 3¼ per cent next year.
Budget 2010 announces further targeted support for
households and businesses to secure the UK’s economic recovery while global
prospects remain uncertain, and puts in place a platform for sustainable growth
in the economy.
Sustainable public finances are an essential ingredient of strong and
sustainable economic growth. Borrowing has been allowed to rise as the
Government has supported the economy through the downturn but in the medium term
it must live within its means. Budget 2010 sets out further details about the
Government’s plans to halve the level of public borrowing as a proportion of the
economy over four years.
The chart below shows UK Gross Domestic Product (GDP), which is a measure of
the country’s total output of goods and services. When the GDP figure is
positive the economy is growing, whereas a negative figure means the economy is
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Article Published/Sorted/Amended on Scopulus 2010-03-25 10:51:23 in Economic Articles