"As recent events in some European countries have demonstrated, if the markets lose faith in the UK, interest rates will rise for all of us....”It does sound like a letter from non-economists. The greatest fear markets will have is negative growth which makes it so difficult to reduce debt to GDP ratio.
“Everyone knows that when you have a debt problem, delaying the necessary action will make it worse not better...." Spending Review - Telegraph
David Blanchflower (one of the few economists to predict early the forthcoming recession) rejected this analysis, saying the business leaders "are not economists. It's a terrible, terrible mistake. The sensible thing to do is to spread [the cuts] over a long time".
He has repeatedly described the public spending cuts as the "greatest macro-economic mistake in a century".
"Clearly you have to deal with the deficit, but there is no economics that says you have to deal with it in a week or a month," Blanchflower said on Bloomberg Television. "You have to be mindful of the data and if the data turns down, which it has, you have to adapt."
He added: "The last thing you do in a recession is make things worse." from Guardian link
Though I have been encouraged by signs that the UK growth is looking more promising