Fraser Nelson Fraser Nelson

Did Balls cause the recession?

We take a close interest in Ed Balls and his use of figures here at Coffee House, and it seems that this interest is reciprocated. The Shadow Chancellor has just been on Daily Politics where he revealed himself as a regular reader. He was confronted with some of the facts about spending and the deficit — and whether there have been ‘deep, harsh cuts,’ as he has falsely claimed. When Andrew Neil presented him with the numbers from our earlier blog, he replied that this was cash terms. He’s right, but adjust for inflation and core government spending (that is, stripping out debt and dole) is down just 0.8 per cent. Is that really what caused the crash, asked Neil. Really?

Balls then changed tack. He downplayed his ‘too far, too fast’ line and switched to another excuse: that it was fear of coming cuts, rather than the effect of actual cuts, that really caused the recession.

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