[John Kelly]

Think you hit the nail on the head Nigel. There are 25% cuts in every government department apart from health and overseas development due very soon. This is massive and will lead to thousands of job losses. At the moment nobody knows where the cuts are going to fall. I would think anyone with a public sector job, which is nearly half the population, will be reluctant to spend money at the moment.

[Doug Holloway]

Hi Guys

In the past I have found people generally can become preoccupied with short term events but this soon evens out.

On the recession subject, I too believe we are in for a rougher ride as the cuts start to bite. The last 18 months have seen many with an increase in disposable income due to very low interest rates but this will reverse as tax cuts start to bite.

The public sector is overfunded but reducing it will hurt us all in the short term but help in the medium.

Cheers

Doug

[Ian Gourlay]

As we have got into politics

In 1992 The public Deficit wasnearly as great as it is today. You may remember interest rates hit a record high. The Chancellor Norman Lamont spent a fortune proping  the pound. and Gold Reserverse.

Bit like having to save Nothern Rock and RBS

However bother Conservitive and Labour Governments did not panic and send the Economy into Melt Down by trying to repay the debt too fast.

If you buy a house you do not pay it back in four years
.
Last time it took 12 years and i think I amright in saying we went into one of longest cycles of Economic Growth I can recall in my liftime
 

 My personal opinion we are being sent intoa double dip rececision by dececisions made by European leaders  and the driving frce is the bankers yet again

[Hilton]

Are you talking about deficit (overspend) or debt, the national debt the Tories have inherited from Labour, the deficit is something else, the difference between what the government is over spending than receiving at this moment in time annually.

The recent package announced will not reduce the debt but the overspend (deficit).