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George Osborne to address Parliament over economic situation

Chancellor George Osborne is to make a statement to the House of Commons on Thursday about the current economic situation.

The move comes amid volatile financial markets and a European debt crisis. Osborne will outline the UK’s view on the economy and take questions from MPs.

Speaking to Money Marketing, Shadow Treasury financial secretary Chris Leslie says: “Ed Balls will be asking the obvious question: where is your plan for growth?”

On Monday, deputy Prime Minister Nick Clegg said the Government would “do more” to encourage growth in the economy. Earlier this week, Treasury minister Justine Greening said the Government will bring forward plans to encourage growth in the Autumn.

Parliament is currently on summer recess, but has been recalled because of the social unrest seen in London and across the country. Osborne has been on holiday in California but is returning for the statement.

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There are 2 comments at the moment, we would love to hear your opinion too.

  1. The traditional measure to stimulate growth in times of economic difficulty is for the government to inject money into combined public and private sector investment programmes. The obstacle to that strategy, though, is that the last government borrowed recklessly at the very time that it should have been repaying past borrowing (borrow in bad times, repay in good times), so that now not only is there no public money available but the government is so deeply in the red that it’s barely able to service its current debt mountain.

    I’m no fan of politicians, not least the current lot which has reneged on its pre-election promises to undo all the damage done to the current pensions framework, but I don’t see that George Osborne has any option but to stick to the current programme of austerity measures. These measures have been endorsed by a number of respected independent economic think tank bodies.

    So what does Ed Balls propose instead? Yet more borrowing and spending? That simply cannot be a workable proposition, given that all it would achieve is to take us even closer to the state of the Greek economy.

  2. Borrowing is not a dirty word. People buy houses by borrowing and expect the cost to be diluted by a rise in the value of the asset (house) over time.
    When national assets are now in decline and the chancellor cant borrow, he will have no choice but to raise tax. He applied VAT which is directly attrubuted to a rise in inflation and with austerity cuts, the tax take will reduce yet further.
    Millionaire investors have just seen their investments fall in value by 10% and not a murmour. If you increase tax by 10% they can hardly complain.

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