Osborne’s £3bn hole; Blachflower fears depression under Tories

By Alex Smith / @alexsmith1982

There are a few important articles about the economy in today’s newspapers that are each worth reading for their own reasons.

First, and perhaps most significantly, George Osborne’s budget plan has been shown to be based on a misreading of figures, and has a £3bn hole.

Next, in an interview with the Telegraph, Gordon Brown rejects the Tories’ gloom and says:

“Everyone now agrees they were wrong [on handling financial meltdown], but they’re also wrong about the recovery and wrong about growth. This week we’ve seen no policy from the Conservatives to get Britain growing again.”

In the Guardian, David Blanchflower says:

“The monetary and fiscal authorities have so far managed to prevent a recession turning into a depression – but it still could, especially if David Cameron and George Osborne have their way.“

And a Guardian editorial says:

“In his speech, Mr Cameron seemed to put the blame for the financial crisis squarely at the feet of the prime minister and his big government…The Tory panic over Britain’s debt crisis is not shared by mainstream economists. Most of them talk instead about the need for the government to take the strain on debt rather than stifle an economic recovery.”