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.
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.
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.