Britain Runs Deficit

This article talks about the ramifications of Britain's deficit. Britain ran a budget deficit for the month of January for the first time in 17 years. January stereotypically yields the highest taxes for Britain. The situation is made worse by the fact that Britain had expected a government surplus. This has lead to a slew of debates on how to curb government spending. This is further complicated by the need for economic recovery, and certain officials fear that if spending is cut it could thwart the recovery process. In addition the number of people collecting unemployment rose despite predictions that it would fall. All of this could have repercussions for the labor party as the country has a general election before summer (a reminder that economic policy is intricately intwined with politics).