2010 advances could limit progress in 2011

The consensus view for the UK's economic outlook in recent months has been that while the worst was over, progress would be slow and consumers were in line to struggle in 2010 burdened with high unemployment and rising taxes.

While it is now possible the consumer will stay stronger for longer and 2010 may not be as bad as initially thought, particularly for the likes of leisure companies, the risk is that 2011 could potentially be unable to improve on any advances made next year. Further tax increases and spending cuts are expected to follow the likely change of Government next year. Typically, these actions take time to filter through and the consumer will not fully feel the effects of this – and predicted public sector unemployment – until the end of 2010/early 2011. Consequently, the consumer is likely to ...