Here’s the figures from The Guardian:
The Office for National Statistics published GDP figures today showing that the UK is officially back in recession with negative growth of 0.2%. These are their top lines:
• GDP decreased by 0.2% in Q1 2012
• Output of the production industries decreased by 0.4% in Q1 2012, following a decrease of 1.3% in the previous quarter
• Construction sector output decreased by 3% in Q1 2012, following a decrease of 0.2% in the previous quarter
• Output of the service industries increased by 0.1% in Q1 2012, following a decrease of 0.1% in the previous quarter
• GDP in volume terms is flat in Q1 2012, when compared with Q1 2011.
What stands out is the 3% decline in construction! As Jonathan Portes of the National Institute of Economic and Social Research points out:
Figures yesterday showed a 25% decrease in public sector net investment last year – a lot of that would have been in building new schools and hospitals. It reflects the slowing down of public sector investment, for example after the scrapping of Labour school building programme.
So why George Osborn should find it a surprise that construction has taken a hammering surely shows a lack of basic economics, then again the Tories cling to the fantasy that private sector is going to take up the slack! But as these figures show that isn’t happening and it isn’t going to!
Investment is the way out and the first place to start is tax and making sure we’ve the resources to collect what is owed, clamping down on tax avoiders, this is a no-brainer, how I hate that word, but it fits the bill, I can’t remember the figures but tax inspectors make money for government any cuts here are shear madness! Well unless you’re a posh boy like Osborne! The government loses an estimated £25 billion a year in revenue to tax dodgers that’s the deficit paid off in no time, if you so wish!