After an unprecedented period of cuts the government has today announced it will invest £50bn to help kick start the UK economy.
The injection will be split in two with £40bn reserved for investment projects in infrastructure, with the remaining £10bn allocated to support struggling UK exporters.
When making the announcement chancellor George Osborne said that he was using the coalitions ‘hard won fiscal credibility’ to release the funds.
While that maybe a bit of an exaggeration, as the International Monetary Fund (IMF) has cut its growth forecast for the UK economy this year from 0.8% to just 0.2%, it is at least a sign that the government have finally realised that if they keep cutting and cutting without spending the UK economy will sink into oblivion.
Of course this is just the start, but if those that receive the funds use them wisely and give the government a return on their investments then, they can have the confidence to invest more and the cycle will continue until we may at last begin to drag ourselves out of a recession and back to growth and prosperity.
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