latest GDP figures make bleak reading for the government

The UK economy returned to modest growth in the first three months of 2011, official figures revealed today, following a shock decline at the end of last year.


Gross domestic product (GDP) - a broad measure for the total economy - grew by 0.5% in the first quarter of the year, following an unexpected drop of 0.5% in the final weather-hit quarter of 2010, the Office for National Statistics (ONS) said.


All this makes bleak reading for George OSbourne as he looks to re balance the economy. I think these figures clearly show a failiure to bring in growth for the UK. These figures include figures since VAT went up in January to 20% but dont account for teh oncoming savage spending cuts by the government. THe next quarters figures will be very interesting indeed.

In the figures we can see that construction took a big hit no doubt as a result of loosing many contracts for building schools projects and a stagnation in house building market.

All this confirms mine and many others thoughts that cutting our way out of a recession is never the way to go. George Osbourne and his tory pals have not learnt the lessons of history. Although this 0.5% shows growth it is only returning to what it was in the third quarter of last year. This is in affect a 6 month stagnation . Whatever spin these political types and media who do a good job of spinning them for them too there is no way these figures show the tories plans are working.

Labour of course have no reply on this whatever they say they would have only cut 2 billion pounds less this year and had no ideas for real growth either.

Time after time i remind people that capitalism is broken and you cannot reform the system. Only a over throw of the system to bring the heights of the economy into public ownership will fill the public purse with funds to reinvest in the services we so badly need.

Removing the economic power of the rich and redistributing wealth to the many would by my idea of making society a fairer society.

2011 with spending cuts ahead looks to be anotehr bumpy year for the British economy. With growing fears in the global market of the likes of Greece and Spain defaulting on its debts the fear of a crisis in the capitalist society is bound to spread.

Britain slowly slipping back towards recession

So as we hear today inflation rose from December, Retail Price Index which shows most accurately reflects cost of living, up 4.8% with public sector pay freeze and low private sector pay rises is resulting in a negative growth for the first quarter of 2011 for sure.

With the rise of VAT not being taken into account yet having only just been introduced in early January and with most of the big cuts to hit in the next few months. Things really do look bleak now. The picture is slowly starting to unflod of what a mess we are going to be left with. With hundreds of thousands of jobs set to go in the public sector which will consequently have a knock on in the private sector i can only see us heading back into recession crippling the poor even further as the government will set a bout more harsher cuts to try and pull the ship around.
But the damage is already set in i feel the ship is sinking and teh attemptst o keep it afloat are failing badly. With the tories at the helm what else should we expect really. This is worrying times indeed for the country and i cant see this working all these cuts.

With interest rates still being forced down at 0.5% to help government borrowing figures this wont change i doubt and with food and fuel prices rocketing as i have posted in previous blog posts things are looking grim.

When will the terms recession and double drip recession be rolled out as we are slowly slipping backwards i think. It is inevitable that this will happen now with all these cuts hacking apart all what is good about our welfare state. I also think the abolishment of the EMA grant to students to stay on in further education will have a bigger effect than many think. It is estimated that as much as 7 out of 10 students will be forced to leave school as they wont be able to afford to carry on. With a whole generation out of education what will they turn to ? there are very few job opputunities out there for the youth of today so that will have a big impact. Alot of kids will grow up again just like under Margret Tatcher not having any job prospects and waht affect that will have on the country will be devastating.

Fuel prices going through the roof

So i just come back from town with my mum in her car. We stopped at the petrol station on the way back. First time we have filled up post VAT rise. Now my mum doesnt have a gas guzzler by any means a 1.1 peogeot 107 very economical little car. does a lot of miles to the gallon normally. But today our fuel came in at £45. This is ridiculous coupled with the VAT rise and the price of fuel rocketing in recent weeks this is just outragous.

As i am not a driver or a motorist this doesnt affect me but i know this will affect many of you out there who do drive. For a large family with two cars possibly who are on a average to low income this fuel rise and VAT increase is going to cripple some families i feel.

What are beloved government doing about this shooting up of fuel ? nothing of course they are loving it as they can pull in more tax for themselves. Simply this is not on. With inflation going through the roof too in recent months this is just not helping people get on with their lives. I feel there is much more the government could and should be doing to put pressure on these fuel companies who are charging huge prices for fuel.

The oil companies in the world like BP and Shell are some of the worst offending capitailist companies i've ever known. The way they expolit their workers and the countries they drill in is just out of order. Cost cutting in the gulf of mexico to maintain high profit margins was found to have been the reason behind the huge oil disaster in the Gulf a year or so ago. This is just hugely irresponsible of these companies and they must be brought into line and properly regulated.

Back to my original point i feel this fuel hike and VAT will once again hit the poorest in our society the hardest. I dont buy this arguement that the rich will face more of the tax as they will be spending more. Wrong as if you are poor you have less disposable income in the first place so a rise in prices is always going to affect the people with less money the most. But once again this tory lead coalition see that attacking people on lower incomes as fair game.

Well lets see what happens in a month or so when fuel prices start reaching record highs and fuel protests start back again. Will the government then step in to help keep the country moving. Will be interesting to see how this one plays out.

Unemployed figure hits 2.5 million yet still no concern from government

Worrying signs today as the unemployed people rose by 35 thousand up to October to hit 2.5 Million people across the country. With the job cuts not set to really bite in hard to the new year where it is estimated half a million jobs will be going in the public sector with a similar amount in the private sector as they are inter-related i can see the unemployed figures hitting and breaking 3 million by the end of next year.

Shouldnt this be a concern to people ? and not least the government who this shows even more that their plan for cutting fast and deep into public sepdning is having a negative affect.

We only hear yesterday that inflation has hit a record high in recent times with teh cost of food and clothing and furniture hitting high prices.

What more concerns me is the VAT rise coming in in January will cripple consumer confidence and spending- which i made reference to in a previous blog post. All together we are in fora very rough ride in the foreseeable future with this tory lead government.

I just hope for everyones sakes they have a plan B. Something tells me they dont or dont want to face the prospect of needing one as they are so hell bent on pushing through these cuts they havent stopped to think waht might happen if this doesnt work and we end up going backwards. Which from where i am sitting is very likely to happen. With growth slowing and unemployment rising are the signs not clear now their plan is not working ?