Is there a plan B for the British economy?

What with the recent loss of the it’s Triple A credit rating, and the double dip recession teetering on the brink of a triple dip, things are still looking pretty bleak for the British economy. Many are saying that there has never been a budget looming that has been so apprehensively looked forward to, and whilst George Osborne and David Cameron continue to declare that we are on the right track to recovery, they must be nervous about next weeks budget.

Looking at Britain and its economy from outside of the box, it must appear to the US that we are a prime example of austerity to the excess, and from the rest of Europe’s point of view, it is clear that it a single currency can not be the root of all evil and to blame for the financial woes across the continent. The message sent out in 2010 that we were a ‘child of recovery’ that would be achieved through budgetary prudence is well and truly down the toilet.

Since the third quarter of 2010, the British economy has only grown by a measly 0.7%, and is more than likely to suffer a further 2 consecutive quarters of depletion once the national accounts for the beginning of 2013 are published in April. As if that wasn’t bad enough, ministers have been forced by the state of public finances to extend their proposed 5 year deficit reduction plan to 8, with the burden that is public sector debt not expected to start falling until at least 2016-17, or even 2017-18.

External bodies are, as a result, fast losing faith and with the news breaking last month that Moody’s would be downgrading Britain’s triple A credit rating, is is widely expected that other ratings agencies will follow suit, and quite where that leaves us is anyone’s guess.