UK Q4 GDP contracts unexpectedly by 0.5 pct qq

Mr_Mumble

Here's some really scary data: government spending rose by 5.2% in December (year-on-year figure). In the next financial year the government projects increased spending of 0.4% over the entire year... and that'll be a spending reduction net of the extra debt repayments.

Wookster

Just seen Ed Balls on TV. He is still as odious as ever, but he also needs a dictionary.

He talks about a growth plan, actually he needs to change that to debt plans. That's all those monkeys ever think about - borrow borrow borrow. Nothing else.

IronWolf

I love how everyone blames the conservatives and the spending cuts, which have barely even taken effect. Its not like they came in and cut 20% of spending off the bat, theyve cut maybe 1-2% of actual government spending so far, so its stupid to think this is the reason for anything seen in the economy.

We're still spending over £100bn a year more than we earn in tax revenues, we dont have an option of whether to cut, its either cut or default.

Out,_Vile_Jelly

How is the Express going to translate this into a boomtime feelgood story involving SOARING HOUSE PRICES?

angrypirate

Out,_Vile_Jelly wrote: »

How is the Express going to translate this into a boomtime feelgood story involving SOARING HOUSE PRICES?

With the currency plummeting as the country re-enters recession the only way to protect your [STRIKE]debt [/STRIKE]wealth is to buy property which is set to soar in the next 12 [STRIKE]months [/STRIKE]years

shortchanged_2

IronWolf wrote: »

I love how everyone blames the conservatives and the spending cuts, which have barely even taken effect. Its not like they came in and cut 20% of spending off the bat, theyve cut maybe 1-2% of actual government spending so far, so its stupid to think this is the reason for anything seen in the economy.

We're still spending over £100bn a year more than we earn in tax revenues, we dont have an option of whether to cut, its either cut or default.

I think the problem is Ironwolf, when the tory spending cuts do kick in this year added to the tax rises we will not be seeing any economic growth for a few quarters and we know what that means.

AndyGuil

shortchanged wrote: »

I think the problem is Ironwolf, when the tory spending cuts do kick in this year added to the tax rises we will not be seeing any economic growth for a few quarters and we know what that means.

VAT has risen but income tax is coming down.

shortchanged_2

AndyGuil wrote: »

VAT has risen but income tax is coming down.

Isn't that what they call pinching from Peter to pay Paul.

IronWolf

shortchanged wrote: »

I think the problem is Ironwolf, when the tory spending cuts do kick in this year added to the tax rises we will not be seeing any economic growth for a few quarters and we know what that means.

True to some extent, but Im very skeptical as to how much government spending actually contributes to growth, a lot of what theyre cutting are useless programmes and inefficient waste.

Typical Labour will blame it all on the Tories if we go back into recession, their policy is to throw money at problems and they dont have any alternative way.

AndyGuil

shortchanged wrote: »

Isn't that what they call pinching from Peter to pay Paul.

Increasing the personal allowance before income tax has two effects. It reduces the burden of tax on lower income people and it also makes working a little more attractive than claiming benefits. The VAT tax rise is a pain as it hits everything for everyone indiscriminantly.