UK Economy Contracts

UK economy contracts - What are the consequences?

The latest figures released by Office of National Statistics (ONS) shows that the growth in the last three months i.e. April to June 2011 has slowed from 0.5 per cent to 0.2 per cent.  The ONS attributes the reduction of growth to various one off events such as the royal wedding, good weather in April which meant that people were busy enjoying outdoors rather than seeking pleasure with retail therapy and also the rather unconnected Tsunami in Japan ñ perhaps people were glued to their TV sets seeing the Japanese towns being washed away rather than spending their money. All these are legitimately one off reasons.
While the labour party is going on with its demand of one-off emergency tax cuts to boost the economy, the Chancellor says that the low interest rates and the UKís credit status justifies his tough stance on the deficit. 

While the growth has definitely reduced, the positive thing is that the economy is still growing albeit at a lower rate. At a time when there is so much of international stability right from the risk of the USA losing its AAA credit rating status to the turmoil closer to home in Greece and S.Ireland, it should be noted that the UK has been steadily gaining more and more ground in terms of stability.

Stuart Boseley, Director of Best Insurance commented on these figures and said that affordability is a real issue, while at a macro level a small percentage reduction in growth figures may not mean a lot, for businesses its getting more and more difficult. He added that they have not seen any reduction in demand for unemployment or income protection insurance. Stuart added that the number of claims for income protection insurance has not risen either and while there continues to be an uneasy impasse, we should not read too much into just one metric and take knee jerk decisions.

Best Insurance is one of the largest income protection and payment protection retailers and is well known for their wide range of covers and also friendly and helpful advisors who assist customers in making the right choice. The redundancy insurance offers benefit payments for over 18 months and Best Insurance is one of the few companies who have products that have an initial exclusion of just 90 days. Most of the insurers in this product segment tend to place their initial exclusion at 120 or even 180 days. For more information on the range of Best Insurance Income Protection and Payment Protection products, click here.  

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