"Weaker growth has meant the government's deficit reduction plan is well off track, with David Cameron admitting that austerity will now continue for a decade, double the five-year period of pain promised when the coalition came to power. The Treasury has borrowed well over £500bn since the recession began and the figures are worse this year than they were in 2011."
http://www.guardian.co.uk/business/2012/jul/25/economy-george-osborne-growth-figures?utm_source=twitterfeed&utm_medium=twitter
John Cridland, DG of the CBI and general all-around supporter for the Chancellor says:
“These are very disappointing figures. They show there has been a lack of growth in the first half of 2012. “When I talk to businesses on the ground, however, the overwhelming view is that right now the economy is flat rather than negative, and there is potential for Britain to get back into growth later in the year.”
Yep, that's it - after 5 of 7 quarters of negative growth, an economy smaller than it was in 2008 and government borrowing way beyond target, added to which another decade of austerity is forecast with, a 2014 Comprehensive Spending Review which has to decimate the public sector further because there is nowhere else to go if your economy is contracting - the CBI appears to be the only major representative body not to be calling on the Chancellor to 'do something different!' Shameful. Even the British Chambers of Commerce, hardly a left-wing organisation, is calling for public investment in infra-structure and the IoD, definitely a right-leaned organisation, says improved leadership is needed from the Chancellor.
Even the 'red-braces' are panicking, given that the ratings agencies, those small, shadowy completely unaccountable companies who can wreck a nations creditworthiness, are circling the UK's AAA rating. Just watch the fall-out when that happens - and there's no pleasure in that, particularly when we all suffer and our pensions are put at risk (both private and public sector - yes, we are all together in that mess!).
Meanwhile, Osborne is the Government's chief political strategist as well as the Chancellor - glad to see he fills his spare time gainfully.
Bitter? You bet I am. This is a disaster and the Government can no longer go on repeating, ad-nausea, that it's clearing up the previous Government's mess. It just doesn't wash.
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