Yesterday was a Black Wednesday for families, pensioners and businesses across our country as we learned Britain has plunged back into recession.
And let’s be clear, this is a recession made in Downing Street by David Cameron and George Osborne.
The Tories were told their reckless austerity policies would backfire. But they arrogantly refused to listen.
Last weekend the Chancellor boasted he could give £10billion more to the IMF to bail-out the eurozone because “we have sorted out our problems”. How out of touch can you get?
With this double-dip recession, the country is paying a very heavy price for David Cameron and George Osborne’s mistakes. Their credibility on the economy lies in tatters.
Mirror readers are right to be angry – because this was entirely avoidable. At the last election the economy was starting to grow strongly as we came through the global recession. There were difficult times ahead. But instead being clobbered with the biggest spending cuts for a generation, our economy needed to be helped to grow.
That is what President Obama did in America. He had a jobs plan to support economic recovery. That’s why America is now growing with more people in work, while Britain is back in recession.
The Chancellor has now run out of excuses. First he blamed the snow, then the Royal Wedding and now the eurozone. But the euro area grew twice as fast as Britain last year. And it was only exports to other countries that stopped us going into recession even earlier.
Of course, there have to be tough decisions on tax, spending and pay. But going too far and too fast has backfired on the deficit. Because if the economy is shrinking and there are more people out of work – claiming benefits and not paying taxes – the deficit and the debt get worse, not better. That’s why the Government is set to borrow an extra £150 billion and the reason why last month’s Budget was such a disaster.
Labour’s five-point plan includes taxing bank bonuses to fund 100,000 jobs for young people, tax breaks for small businesses taking on extra workers and a temporary VAT cut to get money back into people’s pockets and jump-start the economy.
The longer this out-of-touch and incompetent government refuses to listen and sticks with its failed policies the more damage will be done.