The British recovery has been stalling since the government’s spending review in the autumn of 2010, but now the economy has gone into reverse. Since the Chancellor’s spending review the economy has grown by just 0.3% compared to the 3.0% the government predicted.
As for the eurozone crisis being to blame, it is only rising exports that kept us out of recession last year. By clobbering the economy with spending cuts and tax rises that go too far and too fast, the Government has left us badly exposed if the Eurozone crisis deepens this year. This was entirely avoidable and the Chancellor cannot say he wasn’t warned.
These figures are a damning indictment of David Cameron and George Osborne’s failed economic plan. Families, pensioners and businesses know it’s hurting – but the evidence is now overwhelming that on jobs, growth and the deficit it’s just not working.
A flat economy will not generate the job creation needed to bring down unemployment. 2012 could well be another hard slog for workers and businesses.
There is a better way. We need a real plan to get our economy moving again and to create jobs here in Liverpool.
Labour has set out a clear five-point plan to create jobs, help struggling families and support small businesses. Our jobs plan includes tax breaks for small businesses taking on extra workers, a temporary VAT cut which would give families a boost of around £450 and tax on bank bonuses to fund 100,000 jobs for young people.
The Government should take this action now to support our economy and get Britain working again.
