Deepening recession shows why Cameron & Osborne need to change course – my Daily Mirror article

Remember David Cameron and George Osborne’s promises on the economy? We will make Britain a safe haven, secure the recovery and get the deficit down, the Tories said.

Well, in the past two years they have managed to turn Britain’s recovery into a flatlining economy and now a deep and deepening recession.

And with high unemployment meaning a bigger benefits bill, the result is that borrowing is now going up.
It’s now clear that the Tory and Lib Dem plan has failed. And the country is paying a heavy price. Prices are rising faster than wages and businesses are going bust.

One million young people are now out of work. And despite the crisis in the euro area, Britain is the only major economy other than Italy in a double-dip recession.

So this is my advice to the Chancellor: When you’re in a hole, stop digging. Change course, listen to Labour and the experts at the International Monetary Fund and take action now to get the economy moving again.

Let’s tax bank bonuses to fund a guaranteed job for young people out of work for more than a year and boost the construction industry by building thousands of new homes. A temporary cut in VAT would also ease the squeeze on families and help our struggling high streets.

And tax breaks for small businesses taking on extra workers would help firms who want to expand and create jobs.

This is the new direction we now need. All the signs are that George Osborne is going to put his political pride above the best interests of the country.

But the longer the Chancellor refuses to act on the economy, the heavier the price our country will pay.

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Posted July 26th, 2012 by Ed