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This is what George Osborne has done to the British economy

July 25, 2012 9:33 am

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Breaking: GDP has slumped by 0.7% in the last quarter. That means Britain’s biggest double dip recession since records began.

Update 1: Apparently rainfall is already being mooted as an excuse for the GDP fall (rain in Britain, rare?) as is the Diamond Jubilee (huge levels of consumption?). It doesn’t wash does it?

Update 2: It’s now roughly seven quarters since the much heralded “spending review”. Let’s take a look at UK growth in the last seven quarters.

This is what George Osborne has done to the British economy. In total Osborne has been in charge of economy for 8 quarters. The economy has shrunk in 5 of them.

Even if you include the first quarter of Osborne’s time in the Treasury (operating under Darling’s spending rules when the economy grew by 0.6%) the economy has still shrunk by 0.2% under Osborne.

Update 3: If the Jubilee was indeed to blame for the recession (two bank holidays and all), then bear in mind what Cameron said about it at the time: “It is not good for the economy, but it was good for the soul.”

No news yet on whether the British soul has expanded or contracted…

Related posts:

  1. The Osborne Effect – recession edition
  2. Just 2 days ago Osborne said “UK is a safe haven” – now we’re in recession
  3. Sorry George – you can’t have it both ways
  4. What do we do when George Osborne claims victory?
  5. George Osborne told a blatant untruth – he must apologise
  • timsharp1

    It doesn’t wash at all Mark – no doubt they’ll start bleating about how it’s not their fault … Labour …. The Eurozone ….the wrong type of rain ….. Etc

    • treborc

      well we had this before and it was proved without doubt rain was wetter then in previous recessions.

      Labour should be saying look we do need to look at spending a bit to get people back to work, otherwise if this grows the next word will be depression.

  • BenM_Kent

    8 quarters, 5 negative.

    Amazing stat.

    • Mario Peebles

      It is quite an achievement I have to say although not one I would be proud of.

  • Daniel Speight

     The danger of letting boys do a man’s job?

  • hp

    We were all expecting this, weren’t we?
    If not, please pay attention.
    The bit I don’t understand is why unemployment is not higher.

    • Losange

      Under-employment is at a record high, i.e., people taking one or more part-time low-paid jobs in an attempt to keep the wolf from the door but suffering privation and desperation anyway. 

    • trotters57

      A lot of large companies are hoarding labour. Afraid to make redundancies because they will lose necessary skills when (if) the upturn comes, they are taking the hit. Productivity per head is falling in the UK, the main sign of labour hoarding.

      The other reason is increased levels of part-time and temporary work, also known as underemployment.

      • hp

        Let’s hope that those businesses holding on to their employees are the ones with a genuinely sustainable business.

    • Redshift

      You mean why isn’t it higher than what Osborne claimed would be the 2011 peak? The level it is now at AFTER a supposedly brilliant month for the labour market? 

      • hp

        It is becoming apparent that vast swathes of our economy were a debt-fuelled sham.  The tide has gone out and a lot and we now see who’s naked, as the saying goes.  For economic resources (investment and labour) to transfer to genuinely productive uses, I would expect a period of business failure, which we are seeing, and increased unemployment, which we are not.

  • Stephenwatt74

    How long does it have to go on before we see a change of direction? All this leads to is even more austerity to try and keep pace with the decline!

  • Losange

    As a diversion I’d try blaming benefit claimants for the double-dip and then announce plans to “incentivise” such moribund people into accepting “well-paid, full-time jobs” rather than “choosing” to live meagre lives on benefits by making further swingeing cuts into the welfare budget claiming all the while that you were “helping” not “harming” as homelessness and poverty grew.

    Only a matter of time surely before this is rolled out in some form or other.

  • 000a000

    God almighty imagine the recession we would have seen under Labour!

    • aracataca

      How can you sensibly assert that?  The economy was gradually growing under the Darling plan.  Clegg and Vince Cable described Osbornomics as ‘economic masochism’ before the General Election, before dismissing their better judgement and getting into bed with the Tory wreckers.

  • 000a000

    On a more serious note, can anyone point me in the directions of the solid policies Miliband would follow to achieve growth? (not looking at speeches declaring he’s in favour of growth – we all are!)

    • aracataca

      Ed Balls made a speech earlier this year which expounds what Labour’s economic policies would be.  Obviously they will have wait to judge the situation which they will eventually inherit from the Coalition – until then we don’t know where the economy will be on the spectrum from awful to abysmal.
      http://www.edballs.co.uk/blog/?p=2784 

  • http://twitter.com/johnringer John Ringer

    unnecessarycharts.jpg

  • Mike T

    Labour has a lot of new  supporters  with Coalition attacking the Police service  and others who normally don’t vote Labour but the message still needs putting across to the normal Joe in the street.
     I am from Hull and the old war horse Prescott had his famous battle  bus around the Country and I suggest the Battle bus is given a new MOT and put back on the road raising the profile of our MP’s up and down the country and  with Andy Burnham and a leading female MP to talk to the normal Joe. 
    Lib Dems and Tory’s are quick off the mark to use the publicity and yet we will never win a medal unless we  are faster than them, smarter than them. Come on Labour get the Gold not the Bronze.,   

  • Topper

    Apparently the economy is sluggish because of leaves on the line.

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