The UK economy is officially out of recession but only just. While any improvement is welcome an increase in output of 0.1% is nothing to shout about especially as there is a risk this figure maybe revised downwards. Despite the Government pumping billions into the economy in an attempt to quickly exit the recession and increase output before the general election, the result hasn’t been great as the UK economy crawls out of recession and is the last of the major economies to do so.
We often hear that it is only after alcoholics and drug addicts admit to their addiction can they really be helped. Until they admit they have a very serious problem, a remedy that will effectively help cannot be provided.
I suppose the same principle applies to an economic crisis – until the Government admits to the scale of the problem, an effective solution cannot be found. It is therefore interesting to note that two Government Ministers have admitted that the recession is likely to affect us more severely than ever before and more than other countries.
Tessa Jowell, the Olympics Minister, expects the recession to be ‘deeper than any that we have known’ and Chancellor Alistair Darling notes that ‘…we are likely to be more severely affected as a result of the profitability being reduced and I’ve made that point on many occasions’ – which he actually hasn’t but one more fib by a Minister to go with the many Brown tells doesn’t make much difference.
Now we have these admissions is there any chance the Government might put forward policies that are likely to help people struggling to cope with the economic downturn instead of the ill thought out measures of the PBR and reckless plans of borrowing based on the premise that we are better placed than others to deal with the economic slump?