The UK economy is still in terrible shape

Not my view but that of the IMF who are reported to have warned that public debt 'could wreck economy'. Apparently:

" Britain is vulnerable to a 'severe shock' that could destabilise the country because of its vast public debts and fractured banking system, the International Monetary Fund has warned.

In a hard-hitting assessment, the IMF called on the Government to take urgent and draconian steps to rein in national debt.

The Treasury needs to adopt 'credible and consistent policies' to ensure the markets do not lose faith in government debt, the IMF concluded in its annual health check on Britain.

'Notwithstanding recent signs of stabilisation, the UK economy remains susceptible to potential shocks,' says the Washington-based fund's report.

'The sharp increase in public sector borrowing and contingent government liabilities, together with continued financial sector fragility, are significant vulnerabilities.

'In these circumstances, a severe shock has the potential to disrupt domestic and external stability.' "

I await the BBC's coverage of this report.