Deep And Deepening Recession

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26 Jul 2012

The latest GDP figures for the second quarter of 2012 show that the Government’s ill-judged plan has turned Britain’s recovery into a now deep and deepening recession.

With Britain just one of two G20 countries in a double-dip recession and borrowing now going up as a result, it is clear that this Government’s plan has failed.

As the IMF said last week, the Government’s spending cuts and tax rises have choked off growth and risk causing permanent damage to our economy. Yet in the Budget the Chancellor decided to pile more and more tax rises on people who are already hard-pressed, even though the signs were clear that this wasn’t working.

With the Government’s plan having clearly failed, Britain now needs a change of direction and an alternative plan for jobs and growth.

Last week's unemployment statistics again showed that young people in our area are crying out for action on jobs. The number of young people out of work for a year in the Rother Valley is up 256% in the last year, and across the country it has quadrupled; yet complacent ministers are still refusing to bring in a plan for jobs and growth.

We need a bank bonus tax to fund jobs for young people and boost the construction industry by building thousands of affordable homes, a temporary VAT cut, tax breaks for small firms taking on extra workers and to genuinely bring forward infrastructure investment.