UK Will Face Chances of Economy in 2011
Increase in high taxes, big cuts in state spending, and rising unemployment in Britain will be a challenge for the UK economy that could pose a risk of widespread strike action by workers who are not satisfied. British Prime Minister David Cameron, who led the Liberal Conservative Coalition emphasized the need to tighten government spending to immediately cut the deficit as the state public records of the previous government.
“The national interest that we do the right thing, and it’s not an easy thing to put off,” Cameron said as quoted by AFP on Sunday (01/02/2011). He said if in doing these steps, the government should be clear where the English have a future is really bright to be expected. However, the opposition Labor Party says the government is putting the risk of a fragile economic recovery from recession to reduce the deficit by 150 billion pounds, or approximately USD231 billion. EU leaders warn that the cuts will trigger a big attack within the next few months.
“We expect to see workers in both public and private sector not to strike out in this work and against a strong attack in terms of pensions and living standards,” said Chief Militants States Transportation RMT, Bob Crow.
As is known, the number of unemployed in the UK has reached 2.5 million people and is expected to rise further in 2011. On the other hand, the Bank of England this year, hopes began to raise its key interest rate from a record low level of 0.50 percent to combat higher inflation.