Oh George, what have you done?

Three years ago this country entered the deepest recession for seventy years, brought about by an international banking crisis. The last government steered us through some choppy waters and we emerged from the recession last year. They bequeathed the incoming coalition some very positive economic indicators.

In less than a year we have lurched from good growth figures to negative growth. This gives me no cheer, despite my repeated warnings that the coalition’s plans were bad and destructive. The cuts are not only going to be catastrophic for public services, it is damaging the economy.

With rising taxes and unemployment it is no wonder that public confidence is failing. The coalition’s plans for dealing with the deficit are cuts that go too deep, too fast, and do nothing to stimulate the economy. Growth is needed, and the private sector has not produced it. Remember that Osborne’s promises included job creation in the private sector.

I am no deficit denier; clearly the deficit should be tackled. I do deny that cuts are the only way – I think increased tax take through economic growth would have gone a long way to sorting out our debt. I also think that last year’s recovery was clearly fragile, and the coalition’s plans were too drastic and too soon.

In the eight short months of this Tory government we have seen a bust in double-quick time. 2011 promises to be a painful year.

And what does the Chancellor offer up by way of explanation for the latest set of bad economic figures – snow. Did it never snow during the Labour years?

We need a change of direction, and we need it now.

Advertisements