UK economy 'is not the only one with a shaky future'

Friday, June 25 2010

The UK is just one country with an uncertain economic future, following this week's emergency Budget, announced by chancellor George Osborne.

Duncan Higgins, senior analyst at Caxton FX, believes the incoming coalition government has been left with a raft of unsustainable debts.

Despite this, the country could be considered to be performing better than many others, with the pound up against several currencies, such as the euro and the US dollar.

But that does not mean the cuts will not have a significant impact on Britons.

Mr Higgins warns: "Although both the bank levy and Capital Gains Tax may have been less than many had expected, it was clearly still a severe Budget."

He also expects any future problems to interfere with the current growth of sterling and potentially wipe out the UK's relatively strong position.

Mr Osborne used the Budget to announce a rise in VAT from 17.5 per cent to 20 per cent.