The latest revision of GDP figures shows that not only is the UK in recession but that last year the whole economy managed to grow by 0.1%. Any lower and the economy would have been in recession for the whole year.
One of the PM’s five promises was to return the economy to growth, it would be shameless if he used these figures to claim victory. So I expect that to happen immediately.
But the real issue is where is serious growth going to come from? 0.1% is pathetic and terrible, if you want to know where all the money went, this is pretty much it. Not just two quarters of recession or even one year of terrible growth but years and years of it.
The government obviously has no idea about how to change that disastrous performance expect more austerity and totally unbelievable spending cuts designed to enable some reversal of tax rises.
They have been trying this for 14 years, the ideology behind these efforts belongs in Tufton Street and should have stayed there. Surely after all this time they would realise that they are the cause of these huge problems, not the solution. But apparently not.
Nothing but a general election will change this and even then it will take years to reverse. It is therefore not just necessary for the Tories to lose; their poisonous politics and policies have to be consigned to history too.
The country has to change and change quickly with sensible economics and a consensus not to return to austerity or trickle down economics, ever.
Economics, trade and Brexit, not necessarily in that order but the dog always comes first.
By Jonty Bloom Media
Its inevitable that when the the priority is for the BoE to squeeze inflation out of the economy that growth is reduced. We are lucky to have avoided a deeper recession as inflation was looking systemic for a while. The combination of relatively high interest rates and a record tax take will have crushed demand.
There are many problems with the Tories economic policy but this low growth figure isn't one of them. Reducing interest rates will stimulate growth, and total lack of vision in Tory thinking would show up again then. Hopefully Labour will do a better job of managing the economy thereafter.