There's no doubting that a 2.4% contraction of the economy in the first quarter of this year is bad news. It is, however, yesterday's news given that it is now July (!) and we knew the recession was at its fiercest back in January/February.
The divergence between Government economic predictions and recessionary reality is worrying though.
Money has been released from PFI schemes and contingency provisions in order to shore up a pre-pre-election spending spree. The concern must surely be that this is money that was earmarked for elsewhere and we are making hazards for ourselves up ahead.
We've had money streaming out of the Treasury's coffers on Iraq, ID cards, the Olympics, nuclear weapons and the NHS. There is a tangible indication from the Cabinet that all members are raking around for every nickel and dime that can be squeezed into a new policy package between now and May 2010. From cutting back the Govan shipyards to packing away the ID card scheme, the piggy bank is to be wrung dry over the next ten months.
Even all of this would be ok if it wasn't for one overriding concern. The overall objective for the dog days of this Government is to stay in power, not to do what is needed in Britain's best interests. Now, the two should ordinarily equate to the same objective in practice but the lack of money has driven a wedge between these ambitions.
The recent moves to try to bully the press into removing articles that nail the lies in Government spending is very worrying. Are Labour spending every last penny in order to shore up their previously successful but surely doomed 'investments vs cuts' election tactic? Or because they truly believe we don't need any cash left in the bank when we have a record deficit?
If Labour's poll position remains at the base load of 20% and their desperation to overhaul the Tories reaches new heights, what damage could be done to the nation's finances? How many vital provisions would be fruitlessly squeezed dry in the name of version 17 of British Jobs for British Workers?
Salmond vs Trump
19 minutes ago
2 comments:
The full datasheets of the ICM/BBC Scotland poll are now available:
http://news.bbc.co.uk/2/shared/bsp/hi/pdfs/30_06_09_devolution_poll.pdf
‘Salmond ‘more popular’ than Brown’
The Scottish first minister is considerably more popular in Scotland than either Gordon Brown or David Cameron, a BBC poll has suggested.
The poll, commissioned from ICM, found more than half of those questioned thought Alex Salmond was doing a “good” or “very good” job.
But only 37% believed Mr Brown was performing well as UK prime minister.
Tory leader Mr Cameron fared even worse, with only 21% thinking he would make a good prime minister.
The poll of 1,010 people was carried out by ICM between 22 and 24 June to mark a decade of Scottish devolution.
http://news.bbc.co.uk/2/hi/uk_news/scotland/8127464.stm
Labour screwing up finances before being booted out isn't a new phenomenon. Look at the mess new council administrations found when they took over from Labour in 2007.
Post a Comment