How did we get here? The global financial crisis has triggered a global economic crisis, leading to lower GDP (gross domestic product), which in turn leads to less government revenues and more spend so bigger deficits. The massive scale of the budget deficits has required a rescue plan to get to balance by 2015.
The Office of Budget Responsibility (OBR) is now forecasting lower and slower GDP recovery, which means the deficit will remain until 2017. We know that there will be an acute squeeze...
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