"Right now, temporary tax cuts or more spending are two sides of exactly
the same coin - a coin that has to be borrowed. [...] We'd be risking
our nation's credit rating for a few billion pounds more ..."The above words come from George Osborne's speech to the Conservative Party Conference in Manchester on 3 October 2011. Osborne ruled out the possibility of temporary tax cuts as a measure to promote economic growth, and once again to reiterated his commitment to his economic plan A.
In the face of a crisis of economic confidence - two-thirds of UK managers believe a double-dip recession is a foregone conclusion, while a Bank of England expert believes it is a "significant" possibility - Osborne is sticking to his guns.
Last month also saw the Bank of England pump "a few billion pounds more" into the economy in an effort to stimulate growth, through a £75 billion extension to its programme of quantitative easing.
The November 2011 XpertHR economic commentary rounds up the latest data on key economic measures of relevance to HR professionals and reward practitioners (including economic growth, inflation, pay awards and unemployment). We also report on the extension of quantitative easing (nicknamed "QE2") and look ahead to Osborne's autumn statement.
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