Austerity vs growth: Like debating 'which side of the Titanic to be on'

Opting for either austerity or growth in the UK will not be enough to tackle the real structural problems facing the country, according to a leading economist.

As debate rages over which route the UK and other economies should follow to return to an environment of sustainable growth, Jeremy Batstone-Carr, chief economist and strategist at wealth manager Charles Stanley, said neither solution is viable over the long term. He said going for growth now – as the US has – is merely a short-term panacea which will have to be funded by more borrowing, while the UK’s austerity alternative is also riddled with problems. Last week, the initial estimate of a 0.2% contraction for UK GDP in Q1 was revised down to 0.3%. This prompted further criticism of ...