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UK to spend its way out of economic downturn

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UK to spend its way out of economic downturn


Britain is set to pump billions of euros of public spending into building projects to keep its economy on track as an expected recession looms.

A new railway line across London is just one of the major investments the UK hopes will generate growth and employment.

“Tax receipts from things like financial services or the housing market will fall at a time like this, but that is not the time for cutting spending, quite the reverse,” said Yvette Cooper, Chief Secretary to the Treasury. “We have got to make sure we keep up that investment to support the economy through a difficult time.”

Increased borrowing will help fund the exercise. Some 12 billion euros is being poured into London’s 2012 Olympic Games.

Schools, leisure facilities and social housing are also expected to be candidates for accelerated funding.

Some experts believe Britain’s economy is already in recession. Others forecast it is coming next year.

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