Alistair Darling would need £60bn to bail out Britain
Last month Alistair Darling chancellor of the exchequer, announced a massive bail out package the largest in Europe, to save the UK’s struggling economy. Experts say today that the money that has been injected to the economy a cool £20 billion in fact, would have to be three times this amount if you want to get Britain out of one of the worst economical crises since the 1990s. Around £60 billion would be the right sort of amount to bail out Britain and to bring more strengths to the economy, and or course have higher taxation to get the money back by 2010.
Since July to October the economy has shrunk by 0.5% the first time the economy has fallen since the 90s. It would now be down to the government and mainly banks to do something drastic now to avoid the country sinking deeper in to a depression.
Even though the spending that was already made was not enough, apposing party Tories and David Cameron agreed that this was just a waste of tax payers money, and we would all regret the big spending now pay later approach. Even though these comments were made by Tory leader Cameron, top economist disagree and back Gordon Brown on the big spending and wants to see more put in to the pot to insure progression.
Even though the government had dropped the average VAT rate down to 15%, economist believe that this will not be enough for people to start spending again. This isn’t going to be a relaxing Christmas for PM Gordon Brown and even though many drastic approaches have been made this still will not be enough to help a struggling Britain, with the economy shrinking at a faster rate then any one expected.
With the fall in production and many companies suffering, unemployment looking to boost to the 3 million figure next week, Labour's poll rating are likely to take a battering this year, and the next.