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Ministers are discussing how to inject £5bn into the economy without abandoning their deficit reduction strategy, the BBC understands...
The government has faced calls for a "Plan B" on the economy amid flagging growth and rising unemployment...
The Treasury has said any change in strategy would risk its credibility...
The BBC understands a debate is underway at the top of government about what more can be done to boost economic growth without being seen to back away from the coalition's tough deficit reduction target - which Mr Osborne has called the UK's "rock of stability".
Some ministers believe up to £5bn in extra capital spending, on top of what was announced in March's Budget, could be channelled towards the nation's roads, rail and broadband.
The government has already promised to speed up major public works projects and publish an infrastructure plan by the end of the year - but business groups have urged them to go further.
The government has always rejected Labour's calls for an economic "Plan B".
But Nick Robinson said ministers believed the £5bn capital boost would not represent a U-turn since the Treasury's fiscal targets are based around current spending rather than capital expenditure.
The news emerged as the International Monetary Fund said world leaders must take strong action to prevent the risk of a double-dip recession.
Furthermore, while it kept its cards close to its chest on the matter, the Bank of England clearly has the door open to re-engaging in quantitative easing (QE) if the current financial turmoil continues and the economy's struggles continue.
...it would be better if they take at 5 billion and sink it into fuel subsidies as the price of energy has risen 30% this year...
Originally posted by pause4thought
reply to post by michaelmcclen
With ideas like that, if you're not a politician, you should be.
Investing in education means taking the long view. All the better for starting from scratch with...
On the other hand, to invest in education, the money has to come from tax — which basically means industry.
So food might be a safer investment. I can't see the EU taking kindly to such initiatives, though. Can't rock the boat with French farmers, can you? I mean if you tried subsidizing them any further they wouldn't even need to get up in the morning. (Which, though initially popular, would destroy production entirely...)
Tax breaks - on industry in particular - have my vote.
If you think about it now, most of our economy is spent paying scientist billions of pounds on making newer, better and more advance weaponery which benifits not one citizen.
If we took that money and spent it on our civilisation Id put money on it our country would be a much richer happier place to live and be a beacon to society and the world at large.