Before we address the Budget, let's look at the facts...
Earnings growth = 1.5% and Inflation = 3%
UK house prices down 20% for the last two years
UK GDP = 0% for the last two years except for a spike after the Olympics which is now over
Unemployment never hit 10% as predicted, it peaked at 8.5% a and is currently at 7.7%
Mortgages at their lowest because of 0.5% base rates
UK Debt climbs from 35% to 75%
UK Household saving ratio was 4% now 8% because of fear of loss of employment, not a good time
for a retailer as households are saving and not spending
What does all this mean for us?
There is a dilemma which we expect the government of the day to address, in 2008 it was called the global economic crisis which caused a recession. The country has huge debt and needs growth to climb out of it. The old fashioned way was to spend your way out of debt, something that does not work for a single person, but does work for governments. However, we have been told that is not possible because of the size of the debt, so why has another answer not been forthcoming?
Despite all the negativities in the news today. the Chancellor seems to have produced a package of hope for many people. He does not have much to work with, however there are several initiatives that are going to be introduced to help business and people alike, one of them should introduce 600,000 new jobs during 2013, I hope I can get one of them...