The UK economy isn’t in a great state, but it is recovering. That’s a fact. The Organisation for Economic Co-operation and Development (OECD) have confirmed that of the G7 nations, only Canada will have a stronger GDP to April of this year when the figures are published in the middle of the month. The main thrust of the OECD’s findings are summaried in this article from the Independent.
So much for David Cameron’s claims of an economy in ruins.
Once again, the Conservatives are on the wrong side of argument about what’s needed to fix the economy; so why should anyone trust them to make the right choices if they are elected? The policies that the Labour government have followed – to keep public spending going, even if it has lead to record levels of borrowing – has kept the economy alive and created the conditions for recovery and growth.
By contrast, David Cameron’s Conservatives want to take money out of the economy just at the time when momentum needs to be maintained. Take a look at Robert Peston’s piece for the BBC where he calculates that for every pound raised in additional taxes, the Conservatives would cut £4 of public spending, while Labour would cut £2.
Leave aside for a moment that those kinds of Tory cuts are unrealistic through cutting government waste alone and would be devastating for public services at a time when the economy needs the impetus of government spending to keep going. End result, Tory cuts would not only harm the NHS, education and policing but stall the whole economic recovery, push up interest rates and once again risk stagflation.
The raw numbers don’t lie: Labour is right on the economy and the Conservatives, trying for desperate populism, don’t have a clue.