Posts tagged: recession

Official: Tory Led Government is bad for the economy

Conservative and Liberal Democrat spokespeople like to use the phrase “…because of the economic mess Labour left this country in, we have had to … share aircraft carriers with the French / sell off our forests / cut the NHS / betray students / kill a kitten / whatever”.

They use the argument that however undesirable the things they are doing, they are vital to help deliver their economic policy.

Government spokespeople give the impression that the economy was going to the dogs in May 2010 and only the prompt actions of the Tory led Government have been able to save it.

In fact, the direct opposite is true.

Labour had already done most of the things needed to stabilise the economy and return it to strong growth. The actions of the Tory led government over the last 8 months have destabilised the economy and returned it into recession. Unemployment is up, employment is down, inflation is rising, growth is faltering, business confidence is down.

The sad fact is that, as predicted by many economists 8 months ago, the policies of the Tory led Government are indeed choking off the economic recovery.

Here is what has happened to the main economic indicators (growth, inflation, unemployment) over the last 8 months:

GROWTH
Under Labour in May 2010 – on course for 3.5% a year and the strongest in the G7
Under the Con-Dems in January 2011 – back into recession with 0.5% GDP reduction and annual growth of 1.7%
(Source: Office for National Statistics, 25 January 2011)

INFLATION
Under Labour in May 2010 – 3.2% and falling
Under the Con-Dems in January 2011 – CPI at 3.7%, RPI at 4.8% and rising
(Source: Office for National Statistics, January 2011)

UNEMPLOYMENT
Under Labour in May 2010 – falling
Under the Con-Dems in January 2011 – up 49,000 to 2.5m
(Source: Office for National Statistics, 19 January 2011)