Plan A is failing. According to OBR figures, an indent pent organisation set up by George Osborne and David cameron to scrutinise Government performance. You can see form table 1 below the more you cut the more you have to borrow.
Labour left the economy growing with growth of 0.2%, 0.7% and 1.1%; in the first three quarters of 2010 (2.1% for 9 months). Since then under a Tory led government we have seen five quarters of contraction and only three of stagnation of small growth.
Borrowing rising as a result of severe austerity
The red column is the OBR is forecast (June 2010) from Labour for net public borrowing as a proportion of the economy and the purple column is George Osborne's plan and ultimately performance according to treasury figures. YOu can see that the more you cut the more you have to borrow as demand in the economy falls, businesses close, tax receipts fall and costs for unemployment rise.
Failing Growth as a result of severe austerity
Worringly in table 2 you can see the full scale of cutting 'too quick too fast' and taking demand out of the economy. The red column is George Osborne's inflated promises to the British people but you can see austerity is costly and failing. In the purple column you can see the reality of Tory economics. It shows actual growth well below what George Osborne promised.
How bad is this table going to look at the end of 2013? Will we actually see 1.3% growth.
Lost growth for generations
Whilst other western nations have recovered their lost economic growth, the UK remans in recession, flat lining since the Tories came to power. Will Britain ever recover the lost GDP (wealth) caused by the Tories?
