UK Darling Sees Prolonged Slowdown,Falling House Prices-Paper
Sat, Jul 19 2008, 07:25 GMT
http://www.djnewswires.com/eu
UK Darling Sees Prolonged Slowdown,Falling House Prices-Paper
LONDON -(Dow Jones)- The U.K. faces a more prolonged economic slowdown than the government had expected, with house prices continuing to fall, Chancellor of the Exchequer Alistair Darling said in an interview with the Times newspaper that was published Saturday.
"At Christmas most people remained hopeful there would be an improvement by the autumn," Darling said. "Most people would now say it's far more profound. It's affecting every economy and everybody. I can't say how long it will last."
In April, the Chancellor forecast the economy would grow by between 1.75% and 2.25% this year. According to the Times, he said growth would likely be at the bottom end of that range.
"We are going through a very, very difficult time," he said. "You have the twin effect of the credit crunch and very high oil prices. That means the economic news is going to be difficult for quite some time."
According to the Times, Darling said oil prices will remain high and there will be further "downward pressure" on the housing market in the coming months.
With tax revenues slowing in line with the economy, Darling on Friday refused to rule out a change to the government's self-imposed budget rules that would allow it to borrow more money.
In the Times interview, he made it clear that tax rises weren't an option he would consider to cover any unplanned for budget shortfall.
"My judgment at the moment is that there are a lot of people in this country who feel they work hard, they make their contribution and they're feeling squeezed," Darling said.
Changes to the budget rules would likely be announced at the time of the Pre-Budget Report, which takes place between late October and early December. Darling indicated there may also be moves to help support the housing market, including changes to a transaction tax known as stamp duty.
"We will have other measures to support the housing market," Darling said. "Stamp duty is always a factor when people buy and sell houses but we need to make sure that we support the financial system too."
Sat, Jul 19 2008, 07:25 GMT
http://www.djnewswires.com/eu
UK Darling Sees Prolonged Slowdown,Falling House Prices-Paper
LONDON -(Dow Jones)- The U.K. faces a more prolonged economic slowdown than the government had expected, with house prices continuing to fall, Chancellor of the Exchequer Alistair Darling said in an interview with the Times newspaper that was published Saturday.
"At Christmas most people remained hopeful there would be an improvement by the autumn," Darling said. "Most people would now say it's far more profound. It's affecting every economy and everybody. I can't say how long it will last."
In April, the Chancellor forecast the economy would grow by between 1.75% and 2.25% this year. According to the Times, he said growth would likely be at the bottom end of that range.
"We are going through a very, very difficult time," he said. "You have the twin effect of the credit crunch and very high oil prices. That means the economic news is going to be difficult for quite some time."
According to the Times, Darling said oil prices will remain high and there will be further "downward pressure" on the housing market in the coming months.
With tax revenues slowing in line with the economy, Darling on Friday refused to rule out a change to the government's self-imposed budget rules that would allow it to borrow more money.
In the Times interview, he made it clear that tax rises weren't an option he would consider to cover any unplanned for budget shortfall.
"My judgment at the moment is that there are a lot of people in this country who feel they work hard, they make their contribution and they're feeling squeezed," Darling said.
Changes to the budget rules would likely be announced at the time of the Pre-Budget Report, which takes place between late October and early December. Darling indicated there may also be moves to help support the housing market, including changes to a transaction tax known as stamp duty.
"We will have other measures to support the housing market," Darling said. "Stamp duty is always a factor when people buy and sell houses but we need to make sure that we support the financial system too."