London: Britain will go back into recession if the government fully implements the spending cuts necessary for a sustained economic recovery, Hargreaves Lansdown chief executive Peter Hargreaves said.
“If we are going to have the public sector we need, which is less than half the one we’ve got, then there are going to be an awful lot of people earning a lot less. I believe we haven’t had the worst of the recession yet,” said Mr Hargreaves.
The coalition government, led by David Cameron, is planning to cut government spending by about 25% to lower the country’s record budget deficit, which widened as tax revenue slumped during the worst recession in a generation. The FTSE All-Share Index has dropped 9.4% since April as house price growth slowed and the government detailed spending cuts.
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