United Kingdom’s budget deficit in 2010s and Government’s financial policies: analysis and implications

Abstract

This article delves into the intricate nature of the United Kingdom's (UK) budget deficits throughout the 2010s and explores the government's responses to address this fiscal challenge. The article also sheds light on the fiscal policies adopted by the coalition government, formed due to the need for a collective approach to tackle the deficit. These policies encompassed tax increases, reductions in public benefits and investments, and aimed to balance the structural current account deficit by 2015–16. The government's approach aligns with Keynesian macroeconomic doctrine, advocating for government intervention in the economic landscape. However, the article raises questions about the efficacy of these policies in entirely mitigating the deficit. The article claims that while the deficit persisted as a concern, the government achieved a significant reduction during this period, showcasing both challenges and accomplishments in addressing the UK's budget deficit.