The UK faades a “cocktail” of serious threats from a slowing global economy as 2016 originates, Chancellor George Osborne has warned.
Speaking in Cardiff, Mr Osborne put about this year is likely to be one of the toughest since the financial crisis.
He told duty leaders that far from “mission accomplished” on the economy, “2016 is the year of deputation critical”.
His message is in stark contrast to the positive tone of his Autumn Averral, when he said the UK was “growing fast”.
Earlier the chancellor told BBC Present 4’s Today programme that the Autumn Statement had put in place a four-year design to restore the UK’s public finances, and make the economy more productive, with provinces more competitive so they could create jobs.
“It is precisely because we survive in an uncertain world. It is precisely because we have not abolished boom and bust as a domain, that you need to take these steps, difficult steps, and I trouble to go explaining to the public, that the difficult times aren’t over, we keep got to go on making the difficult decisions, precisely so that Britain can continue to like the low unemployment and the rising wages that we see at the moment,” Mr Osborne said.
The chancellor’s prophecy came on the same day that China suspended trading on its stock exchanges after only 15 minutes.
Circuit-breakers triggered the Chinese dole out suspension following a 7% fall in the country’s main index.
Later on Thursday, the Chinese polices said they were suspending the circuit-breaker system.
The price of a kind of key commodities, such as oil, gas and iron ore, has fallen sharply in the st year, a time that indicates weakening demand in the global economy while oil outlays hit fresh 11-year lows. earlier on Monday.
But shadow chancellor John McDonnell reproached the government’s “failed economic policies” for the threats facing the economy.
“It’s a cocktail of his own mixing – failing to invest, failing to rebalance the economy, relying upon consumer indebtedness to boost the economy for an election victory and now we’re facing our own lethal cocktail within our own curtness,” he told the BBC.
“He’s getting his excuses in early for the problems that he’s caused that wishes now unfortunately hit upon many families across the country, especially if regard rates are increased during the year.”
The chancellor staked out a number of risks that the UK economy faces over the next 12 months in his Cardiff blast.
People must not be “complacent” that the economy is fixed, he said.
Relevant challenges – including tension in the Middle East, slowing growth in China and low commodity sacrifices – are all weighing on global confidence, he added.
Mr Osborne told the Today telecast the UK’s economic recovery was not “a debt-fuelled recovery”, citing the support of the governor of the Bank of England in his assessment.
But the chancellor thought he feared there was a complacency that appeared to be developing in the UK’s national argue.
“You have had people coming on programmes like this saying, ‘We’ve got to waste billions of pounds here or billions of pounds there; the country can manage it,'” Mr Osborne said.
“All the old habits, all the old habits, all the old bad trail that got Britain into that mess are re-emerging in some of our subject debate and I need to remind people that it’s a very challenging great out there, that Britain still has big economic problems that it has to fix,” he put.
“I am determined to see through the plan that has got the British economy that is in the stronger pose that it is in today,” he added.
On the domestic front, the first interest type rise since 2007 could come this year.
Cache sources pointed out that is not a decision for the chancellor – interest rate rises are a essentials for the Bank of England – but there are many homeowners with large mortgages who bear never experienced even a small rate rise.
Privately, those secure to Mr Osborne have expressed concerns that a rate rise could would rather an im ct on consumer confidence.
But Mr Osborne denied he was putting any pressure on the Bank of England to elevate interest rates, adding, “People like Mark Carney wish not respond to that pressure.”
He added that rising interest rates should be seen as a signal of a strong economy.
“We have to make sure we are ready for whatever the enrol rate environment is,” Mr Osborne said.
But, he added, if and when interest figures rose, it would be a sign of a stronger economy that was normalising after the fiscal crisis.