Wednesday, 22 April 2009

3.5% growth in the UK - a reverse engineering job

Yvette Cooper is the Chief Secretary to the UK Treasury and as such she was very much in the firing line today after the UK budget confirmed the worst suspicions about the state of the public finances.

She was challenged on Channel 4 News (which is the best TV news service in the UK) to justify the Chancellor's belief that from 2011 onwards the UK economy will grow at 3.5 percent. Her reasoning was pathetic and added to the sense that the number was selected on the basis of a reverse engineering job performed by the Treasury to come up with a number which would make the capital markets less panicky than they already are about the UK government's need to borrow more than £200 billion this fiscal year and for years to come.

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