Government 'can't ease recessionary pressures'
03 September 2008
There is little the government can do to ease the recessionary pressure on the economy, it has been claimed.
Howard Archer, the Chief European and UK Economist at Global Insight, said that the government does not have the money to ward off recession.
Speaking following claims from the Organisation for Economic Cooperation and Development (OECD) that the country is approaching a recession, Mr Archer suggested that public finances are currently stretched too thinly for the government to be able to prevent a recession.
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"The government just haven't got the money; the public finances are badly stretched and even if they allow public deficits to rise further there is very limited scope to what they can do," said Mr Archer.
A number of schemes have been announced by the government to help the public afford their housing. A stamp duty holiday for properties with a value up to £175,000 will come into effect today (September 3rd) and other schemes have been announced to help people meet mortgage payments or take their first step on the property ladder.
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