UK Policy Response to Debt Focuses on Deficit Cutting

For those living in the UK, the problem of debt is one fought by individuals as well as the government. Individuals have a lot to learn as they get used to dealing with debt as a normal part of life. Many citizens of the United Kingdom have been living with large levels of debt for years. This has been a normal part of life for them with most people in the UK only taking notice of their debt situations after racking up over 15,000 pounds of debt, according to a recent study of those in the UK with debt.

One of the issues with which the UK government has been dealing is that of retirement age. David Cameron’s government has been cutting through the biggest cuts in spending that the UK has experienced in the past 60 years. These cuts have helped dig the UK out of debt, as it remains highly rated with investors. The high rating from financial services firms for the debt of the United Kingdom has done much to help push the UK into the best possible situation when it comes to debt and liquidity. Other countries such as the United States should examine how the UK is handling its problems. While it hurts in the short run to cut spending, the long term outcome of the cuts will be very beneficial for the UK, avoiding the problems of other countries, like those in the European Union.

In fact, the EU recently changed its policies to mirror those of the UK, reducing debt levels significantly. The policy changes may not be implemented until a few years in the future, but it is a step in the right direction for the UK and the EU. Perhaps in the future, the other countries which make up the top ten, namely the United States, will also take the same debt and deficit reducing measures.

The United Kingdom under David Cameron has reduced the deficit by significant numbers. This initially drew criticism from those who were used to the idea of having big budgets with which to make large expenditures, but the results in the end will be very good for the country and its debt. The AAA rating which was recently re-affirmed by Moody’s in New York City will do much to keep the United Kingdom in the black in the long run. These measures which combat the deficit directly will likely be seen as successful in the future. For those who have been watching the changes brought around by the Cameron government, the results seem to be very good.

With the United Kingdom reducing its deficit, it will avoid the problems encountered by European countries such as Greece. The UK could technically issue more amounts of debt, because of its high rating. The debt will continue to be rated highly, and the overall financial condition of the UK will improve both domestically and internationally. As the world works on its debt and deficit problems, the UK has been working hard to improve its situation.