Recession what Recession? The private sector will pick up the slack and the Conservative Party has all the answers in these “difficult times.”
As the proof of the pudding is being tasted around the country it looks less and less like we managed to avoid a slump and more like we could be heading for a decade of stagnation.
Today we have the British Chambers of Commerce predicting that the UK economy only grew by 0.3% from March until June. Others are predicting we shrank by 0.2% (citigroup) in the same period. A third of finance directors believe we are heading for a double dip recession according to Deloitte.
Economic figures other than the overall rate of unemployment have been dire over the past 9 months. If the expected low or nonexistent growth in the UK economy comes to pass it will mean that the UK economy has not grown for 9 months.
In terms of the deficit this is a disaster, as without growth the deficit will remain or, as is the case at the moment, increase.
This news is being kept off the front pages at the moment due to the News International Scandal and Cameron’s difficulties, but nothing will hide the mess of Osborne’s economic policy as the summer continues with consumers becoming shrinking violets.
Whether we go into a double dip recession is irrelevant, as whatever the technicalities of the economic figures show, the UK economy is stagnating. However, IF we go into a technical double dip it will be a massive psychological blow to the government and confidence will be further reduced as a result and of course Ed Balls will be able to go further onto the attack.
How long will we accept that it is all Labour’s fault??