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Critically appraise the fiscal strategy of the UK Conservative-Liberal Democrat Coalition government - Essay Example

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general election, which happened in May 2010, a hung Parliament was realized and this led to the formation of the Conservative–Liberal Democrat coalition. Britain has long history devastating coalitions. However, after World War 2, party politics in the UK…
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Critically appraise the fiscal strategy of the UK Conservative-Liberal Democrat Coalition government
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Critically appraise the fiscal strategy of the UK Conservative-Liberal Democrat Coalition government

Download file to see previous pages... There is no plausible, consistent, or convincing measure that has been established to oversee national recovery by the coalition government. As a corollary, this paper will endeavour to critically appraise the fiscal strategy of the UK Conservative-Liberal Democrat Coalition government. To come up with a comprehensive and detailed appraisal, it is essential to revisit the genesis of the current financial woes in the UK and the rest of the world i.e. the global financial crisis.
The first indicators of the global financial crisis were realized on August 2007. They developed progressively throughout the 2008. It was not until September/October 2008, that the full-blown effects of the crisis were realized. In this document, a succinct summary of the fiscal policy response strategies to the global financial crisis in the UK is given. An emphasis is given to the changes in those strategies after the shift of power from the Labour government to the Conservative-Liberal Democrat coalition. The Conservative-Liberal Democrat coalition took fiscal austerity stance in a bid to counter the financial woes in the UK. This was particularly evident in the emergency budget was produced months after the inauguration of the Conservative-Liberal Democrat coalition where public expenditure cut were projected and the declaration of a programme to eradicate the structural budget discrepancies for five years was made.
In March 2008, the Treasury asserted that UK’s the economy was unwavering and flexible, was experiencing a steady growth, and that the country had the aptitude to deal with fiscal shocks swiftly and with minimum financial expenses (HM Treasury, 2008a: 2). This self-satisfied stance changed in September/October 2008 when major financial effects of the global crisis started being experienced. The Labour government established a strategy aimed at enhancing the episodically ...Download file to see next pagesRead More
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