The British government has decided to allow the interests rates to be very low to help the weakened economy. Also other instruments will be used to aid both individuals as companies in these difficult economic times. Most likely through tax rises and spending cuts to deal with the country’s deficit. The report forecasts that if the Conservatives win the elections, they want to receive £20 billion in taxes and save £80 billion by reductions. Only tricky thing about possible tax rises is the next year general election that can easily damage every political party that supports getting more money out of the tax payer’s wallet.
I think it’s the moral duty of the government to use all political/financial ways and means at their disposal to boost the economy. Tax rises will most likely harm every citizen in its material welfare but a government can’t just wait till this crisis is over. It’s better to act quickly and accurate with a relative high cost then wait and bear the even higher costs in the near future.
Source:http://www.guardian.co.uk/business/2009/oct/12/interest-rates-to-stay-low-cebr
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