So as we hear today inflation rose from December, Retail Price Index which shows most accurately reflects cost of living, up 4.8% with public sector pay freeze and low private sector pay rises is resulting in a negative growth for the first quarter of 2011 for sure.
With the rise of VAT not being taken into account yet having only just been introduced in early January and with most of the big cuts to hit in the next few months. Things really do look bleak now. The picture is slowly starting to unflod of what a mess we are going to be left with. With hundreds of thousands of jobs set to go in the public sector which will consequently have a knock on in the private sector i can only see us heading back into recession crippling the poor even further as the government will set a bout more harsher cuts to try and pull the ship around.
But the damage is already set in i feel the ship is sinking and teh attemptst o keep it afloat are failing badly. With the tories at the helm what else should we expect really. This is worrying times indeed for the country and i cant see this working all these cuts.
With interest rates still being forced down at 0.5% to help government borrowing figures this wont change i doubt and with food and fuel prices rocketing as i have posted in previous blog posts things are looking grim.
When will the terms recession and double drip recession be rolled out as we are slowly slipping backwards i think. It is inevitable that this will happen now with all these cuts hacking apart all what is good about our welfare state. I also think the abolishment of the EMA grant to students to stay on in further education will have a bigger effect than many think. It is estimated that as much as 7 out of 10 students will be forced to leave school as they wont be able to afford to carry on. With a whole generation out of education what will they turn to ? there are very few job opputunities out there for the youth of today so that will have a big impact. Alot of kids will grow up again just like under Margret Tatcher not having any job prospects and waht affect that will have on the country will be devastating.