Tory Economic Failure

After months of saying it, the sad fact is the Conservatives have been caught exposed as the predicted double-dip recession awaits us all. This was an utterly avoidable downturn had the Conservatives listened and accepted they were wrong on the recovery.

Labour has warned for months, including in the General Election, that the George Osborne plan was totally and utterly flawed.

He simply cut too far and too fast.

The Tory argument that Labour was being risky with the British Economy has been blown away with the Conservative Chancellor moving towards a Plan B. We have already seen fiscal stimulus with Quantitative Easing with the Bank of England, we note the infrastructure investment projects.

You wont hear this tomorrow but George Osborne is moving towards our position.

Unfortunately it comes too late. Today the OECD predicted the second recession; instead of apologising to the British Public we have Tory Ministers antogonising Unions and 'itching for a fight.' CCHQ even put out a most rediculous of attacks claiming that Labour would increase your mortgage interest by £5,000 per year.

It is utterly desperate stuff from a Party that is loosing its economic credibility after only 18 months in power.

Despite all the crap from Conservative Councillors about borrowing and investing; their own Chancellor is to rack huge amounts of debt - even more than Labour - so no pious lectures required. You lot have mucked up the recovery; 7 out of 10 voters think so.

The fact is the Tory government is set to borrow £46bn more than they originally planned – in March the Office for Budget Responsibility (OBR) increased its forecast for net borrowing by £45.6bn for 2011-12 to 2015-16. Goodness knows where we sit tomorrow.

Voters will remember this double-dip is a Conservative recession and it is a result of their mistakes. They were warned.

Labour stimulus during the last recession ensured the UK returned back to an even keel; Car scrappage, boiler scrappage, future jobs fund and government led construction made sure that the deficit began to shrink. And shrink it did. Before a single penny of the Tory cuts had even been implemented £39,000,000,000 had been wiped off the deficit.

This was not magic 'wot dunnit'. It was growth. The Deficit was only £136.7bn by the end of last financial year. The thing that we knew all along was that investment led growth would cure the deficit of its own accord.George Osborne will tacitly admit that when he institutes his £30bn infrastructure boost tomorrow.

He has accepted the Keynesian argument that you need investment led growth to shrink the deficit. It seems the only people who still hanker after deep cuts are the Thatcherites... and sadly we have a few of those in Rochester & Strood.