He has been desperately trying to persuade us that things could be worse, but the truth is that this week’s news is a bitter blow for George Osborne.
He has been desperately trying to persuade us that things could be worse, but the truth is that this week’s news is a bitter blow for George Osborne. Our economy only grew by 0.2 per cent this quarter, at a time when he desperately needs stronger growth to generate the tax required to finance public spending and reduce his awful budget deficit. Our chancellor may seem nonchalant but, as he knows, this pitiful growth means less money for the exchequer, and the prospect that Britain will be stuck in a permanent state of semi-stagnation. The coalition government has seemed weirdly insulated from the bleak reality. But the truth is beginning to dawn: unless the economy picks up dramatically and sustainably, the Treasury will soon have to review its long-term plans for the public finances — and that will mean even more austerity to stave off a crisis.
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