George Osborne, the Chancellor of the Exchequer, has finally admitted that his economic plan for recession-riddled UK has back-fired. His focus over the last two years has been on a £6bn austerity drive that cut welfare benefits drastically, drawing the ire of the general public. The country is still suffering from falling exports, high unemployment (expected to hit 3 million by 2013) and poor GDP growth (0.2% in the last quarter). The economic conditions in the Eurozone and the US have not helped either. His statement is a complete reversal from that of last year, where he claimed UK was out of the “danger zone”. In his mini-budget, Osborne has provided for free nursery care, capped rail fares and increase in state pension age, which are all seen as measures to attempt to favour less-wealthy families who have been alienated by the austerity drive.
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