Wednesday, 22 December 2010

Latest growth forecasts show gloomy future for Britain

From the Morning Star

Economic growth forecasts have been revised down to 0.7 per cent in the latest quarter, according to figures released today.

The Office of National Statistics found that growth in the construction, mining and quarrying industries all fell and there was a recorded fall in service industry output.

The drop indicates that 2011 will be another tough year for the public, with the VAT rise to 20 per cent to dampen consumer spending, on top of the effects of government spending cuts.

Left Economic Advisory Panel co-ordinator Andrew Fisher said that prospects for the economy were "grim."

He added that, in the long term, Britain could be in the same situation as Ireland, which recently took out a controversial IMF loan to help keep its struggling economy afloat.

"Continued slow growth - or even a slip back into recession - will encourage the coalition government to make further cuts and could send the UK into a spiral similar to Ireland's.

"It is clear that the labour movement needs to force a major shift in economic policy in 2011 to prevent misery for millions."

More at diggersland blog.

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