Budget for growth (may not include any actual growth)

By Mark Ferguson / @markfergusonuk

This budget was spun by the government as a “budget for growth”. In reality it was anything but. It takes real gall to present a budget featuring the third downgrading of growth in a year as a budget for growth. The economy needs to grow, but there was precious little in today’s announcement that will provide that.

It doesn’t look good for future years either, although to listen to the chancellor you’d think the recovery was secured. Supposedly inflation will drop by half and the economy will undergo something of a growth spurt next year. There was much hilarity in the house as Osborne announced that the economy would grow by 1.7% this year. That sounds like fantasy economics. If the economy slips back into recession in the coming months then much of what he said today will be swiftly disregarded. Recent growth forecasts have been wildly inaccurate, and there’s little reason to believe that today’s will be any more accurate.

It’s often said that if you repeat something often enough then it becomes in some way true. Osborne tried that tactic a few times today. “We’re all in this together” made a comeback, as he slashed corporation tax and kept VAT at 20%. “Greenest government ever” was given another airing, although that was shown to be laughable as Osborne cut taxes on fuel in an attempt to assuage angry motorists. Fuel prices are too high, but these measures are a drop in the ocean when the real cause of high prices is unrest in the middle east.

In response to the chancellor, Ed Miliband gave a strong and passionate response, peppered with some good one liners (and admittedly, a few dud ones). He looked much more comfortable today than he usually does at PMQs, and had the chancellor squirming a few times. Ed Balls sat next to him looking triumphant, nodding his head and gesturing at the government benches. The contrast to the CSR and the emergency budget was stark. It was the Labour benches that looked cheered by the performance of their leadership today, and the government benches who looked pensive.

Miliband looked like a leader today. It might even have been his best performance so far in the house as leader. That should show up well on TV this evening. That’s something positive to take from today at least, on an otherwise grim day.

If that was a budget for growth, then Osborne needs some growth, and quickly. Since he’s done little to provide it, he’s going to need more than a little luck.