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Highlights

U.K. Home Prices Drop as Economy Nears `Abyss,’ Rightmove Says
U.K. Mortgage Lending Declines to Lowest Since 2005, CML Says
Economy in recession, says E&Y
Darling to ‘reprioritise’ spending
U.K. Deposit Fund Pays 3 Billion Pounds for ING Iceland Savers

 
Very constructive move here- front loading future public sector capital expenditures.

Darling to ‘reprioritise’ spending (FT)

Alistair Darling evoked the spirit of John Maynard Keynes on Sunday as he signalled a “reprioritising” of spending plans towards capital infrastructure, housing and energy. The chancellor of the exchequer will call on departments to bring forward billions of pounds of capital expenditure to invigorate the economy ahead of an expected recession. The government is limited in its ability to step up overall spending for the current three-year period, set at the last comprehensive spending review. But it can bring forward money from planned budgets in 2010-11 – after the next general election. The government has already announced the front-loading of money to build more social housing as part of its autumn relaunch. It has also allowed the Ministry of Defence to sign off its £4bn aircraft carrier contracts by juggling its budget.


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