|A weak recovery good news for Labour?
||[Feb. 1st, 2010|12:16 pm]
When the latest economic growth figures were released and showed that Britain had coughed and spluttered its way to a miniscule growth of 0.1 per cent – basically, if you hadn’t popped down to the corner shop for that 4-pinter of milk last Monday, the economy would still be shrinking. So, bad news for Gordon Brown, eh?
On the face of it, yes – despite all that spending, not to mention the decade Brown spent overseeing an overheating economy, Britain had only just found its way out of recession, and after most other major economies. But a week later, it seems that in a perverse way, the weak recovery and the prospect that the economy may plunge back into recession at the slightest wobble could actually work against David Cameron.
The main economic dividing line between the parties, encouraged by both, has been that while Labour would keep on spending this year, the Tories would get on with the job of cuts right now to deal with the £178bn hole in the nation’s bank balance.
Suddenly, with the weak recovery and the scare of a “double dip” recession, Cameron’s tough line on reducing public spending is starting to look a bit risky – while Brown’s plan of continuing to spend our way through 2010, once seen as wasteful, is now looking necessary.
It’s all put Cameron in a spin – he’s clearly backtracked on his language of cuts. And all that talking the country down isn’t helping our recovery either, as the deputy PM, Lord Mandelson, has been pointing out.
In the end, if the next load of figures released in April do show Britain’s economy is nose-diving again, it will obviously be terrible for Brown going into an election. But in the meantime, it has put the Tory economic plans in a bit of a mess. It’s a funny old game, this political stuff.
2010-02-01 01:30 pm (UTC)
wait for the budget
If we don't have an election first and my bet is that e will
Then the truth of the situation will be laid bare.
Ah, but what is it?-I'd love to know
The truth is we are flat broke. When you add all the PFI cash and the public service pensions commitments to the published deficit, you will be out of this country on the first available flight.