The causes of the recession in general cannot be determined but the onus falls on the administration and the financial system of the economy. (Recession, n.d.) The recession in the latter half of 2000 was severe and the effects were visible in various economies of the world. The focal point of the recession of the 2008-09 was on the USA and it soon spread to the different corners of the globe. The main reason for the recession can be attributed to the housing sector of the USA and the inability of the financial system of the USA to tackle the problem. The components of the financial system like the banks and the financial companies were many ways responsible for the origin of the recession. USA, being one of the financial epicenters of the world, had a control over the global financial system. Therefore, the effects of the recession were visible in many parts of the world and the companies were cutting their manpower to cut the costs. The global economy suffered and the Governments of the various countries had to take severe measures to counter the effects of the recession. UK being another nerve center of the global financial world faced the severe effects of recession. Another cause for the recession in the UK was that the economy of the country was dependent on the economy of the US and after the globalization of the economy companies of the other countries started to function in the UK. The Government had to put some efforts and it had to renew the policies to control the effects of the recession. The paper will explore the issue recession in the UK with special emphasis on the impact of measures undertaken by the government to tackle the recession.
As discussed in the earlier part the origin of the global recession was the USA and the reasons for the recession can be attributed to the failures of the banks and the financial companies. The sector, which contributed to the