The British government has announced plans to borrow billions to boost the economy and ward off looming recession. The Chancellor Alistair Darling said he would cut sales taxes and inject money to help small businesses and low earners: “Mr Speaker, in these exceptional economic circumstances, I want to take fair and responsible steps to support business and people now while putting public finances on the right path for the future, and that is what I will do today,” said Darling.
The government hopes its proposals will stimulate consumer spending, and prevent the economy from seizing up. But the opposition accused ministers of ‘live now, pay later recklessness,’ saying they are racking up huge debts to be paid back by future generations. The increased borrowing pushes Britain’s national debt over a trillion euros. Some analysts say the government’s hopes of winning the next election now rest on the coming recession being merely short and shallow.