This morning’s growth figures show that – as expected – the economy grew by just 0.2 per cent in the second quarter of 2011. Given that the economy flat-lined in the six months after September, it means that growth has been anaemic for the last nine months as the chart below shows.
For Medway residents it shows that the Conservative austerity plan which is seeing over-aggressive cuts has resulted in a decline in consumer confidence. Unemployment, benefit payments and future prospects remain bleak.
It is time for the Tories to accept that they need to focus on growth and jobs. Time and time again the opposition has made it clear that the doom-mongering and negative language from the Chancellor would spook investment. It clearly has.
The OBR’s latest prediction for 2011 growth of 1.7 per cent now looks virtually impossible to achieve. Even if the economy gets back on track in Q3 and Q4, 2011 growth will barely hit 1.2 per cent – under half its original prediction of 2.6 per cent which it made in June 2010. The OBR has already been forced to downgrade its growth predictions on three previous occasions and will have to do so for a fourth time when it releases its forecast evaluation report in the autumn. Alongside this, they will be forced to raise their borrowing predictions.
Tories can not hide now from their failure to mismanage growth in the economy. They have taken the wrong and over aggressive course and the longer this continues the longer that residents across Chatham, Rochester, Gillingham, Rainham and Strood will suffer.
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