14/10/2010
The world's economic watchdog has supported the coalition government's plans for spending cuts, labelling them 'strong, credible and essential.'
As reported by The Daily Mail, the International Monetary Fund (IMF) endorsed the decision to make cuts now rather than wait. It also praised the plans, saying that the emergency budget has put the country on the path to economic recovery.
The news is expected to boost the economy by securing consumer and business confidence, after the IMF declared that the British economy is on the mend.
"The government's strong and credible multi-year fiscal deficit reduction plan is essential to ensure debt sustainability," said the report. "The plan greatly reduces the risk of a costly loss of confidence in public finances and supports a balanced recovery. With record-high budget deficits, credible fiscal tightening is essential to preserve confidence."
As expected, George Osborne, Chancellor of the Exchequer, was pleased to learn of the praise. He said the report was a "very welcome endorsement.''
He told The BBC: "They have made it pretty clear that the deficit reduction plan that we have set out is essential for bringing about sustainability in our budget."
This is the latest in a string of public support for the coalition government's plans to tackle the deficit. Already, the Confederation of British Industry, the OECD, the European Commission and the Bank of England have praised the bold measures.
It's expected that people will start spending more, as their confidence in the economic recovery strengthens. This presents an exciting opportunity to traders selling to retailers in the UK, with stores poised to enjoy the benefits of increased consumer spending. Through invoice finance, businesses can free up their cash flow tied up in invoices and instead of waiting to be paid, the money can be invested back in the business.
This gives businesses a chance to diversify, or source more stock, in order to meet the demand of a client base that is expected to start buying more to sell on to customers who are spending more.
Laura Nineham