Former Business Secretary Says UK Is Heading For Reality Check
The former business secretary who was one of the first senior politicians to warn of a looming financial crisis in 2007 once again predicts problems on the horizon for the economy due in part to unsustainable levels of debt.
Cable highlighted high levels of household debt, and runaway house price inflation as two areas of concern alongside external threats from China’s slowing economy. If his predictions turn out to be true this could in turn have an impact on businesses.
The causes of the last recession have been covered in fine detail, however it appears that few lessons have been learned when it comes to the housing market and household debt levels. More worrying still is the UK’s reliance on the service industry.
Manufacturing continues to see falls in output with several high profile closures in recent months adding to the sense of gloom from the sector. Retail and the service industries continue to see growth, however, and these sectors are continuing to provide support to the economy and the current Chancellor’s long term plans.
Those plans could well unravel however as a consequence of the increased spending required on national security in the wake of the terrorist attacks in Paris, which once again brought the war in Syria to the streets of Europe.