Chancellor Osborne admits economy is weak

| September 7, 2011 | 1 Comment

At a speech at the insurers Lloyd’s of London, Chancellor George Osborne has admitted that recent weak economic data had led to a downgrade in growth.

Speaking at the dinner in London, the Chancellor said: “We warned repeatedly that the recovery would be choppy.”

However, despite the sluggish economic recovery, the Government is sticking with its deficit reduction plan.

Some have suggested the harsh plan could push the economy back into recession.

However, Mr Osborne continues to defend the cuts and he has deemed them necessary and fair in order to bring the budget deficit down.

A recent series of weak figures is expected to lead to a reduction in economic growth. Retail sales, construction, manufacturing and service sector figures have all been weak of late.

Last week official figures from the Office of National Statistics revealed the economy grew by just 0.2% in the April to June period.

The Government’s independent Office of Budget Responsibility (OBR) currently expects the UK economy to expand by an optimistic 1.7% for the 2011 year.

The British Chambers of Commerce (BCC) is forecasting growth of just 1.1% this year, down from its 1.3% forecast in June and much lower than the 1.9% it estimated at the start of the year.

Furthermore, the Confederation of British Industry (CBI) recently revised its growth prospects to 1.3%, down from its May forecast of 1.7%.

However, returning to the OBR, growth forecasts are expected to be lowered when Mr Osborne presents his autumn statement to Parliament in late November.

Meanwhile, in his speech, Mr Osborne said: “While we have all had to revise down our short-term expectations over recent weeks, the only people who should be fundamentally re-examining their view of the world are those who thought that this time was different.”

He said he believes his deficit cutting plan is strong and “flexible” enough to withstand shocks along the way.

Tags: admit, , deficit reduction, , , , OBR, , ,

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  1. Carl Barron says:

    Is this thing a joke of Osbourne’s: Austerity plans are here to stay?

    Spending cuts are here to stay says Osbourne. Not in Tory Town Bournemouth who want to build a 5 Million Plus Service Center that the public don’t even want. See the towns Echo Sunday 4th September 2011 for details.

    The joke is the town hasn’t even had a Bus Terminal since it was burnt down in around 1979 instead buses stand pumping out choking diesel fumes and blocking traffic flow.

    Yet they are in process of trying to legitimately Land Grab 90 per cent of the Stour Valley Nature Reserve by fencing the area off from the public for the grazing of just TEN Cows in an area a mile and a half long, would you believe? Yet as we all know after 8 years the fenced off land reverts to the council no doubt to sell later to developers so they can misspend more money on wasted projects such as the one and a half million pounds or so they spent on a Surf Reef that doesn’t work.

    Tory Town Bournemouth is becoming legendary for failed projects and bad planning such as the Eyesore Imax Cinema nobody wants to go to. Right on the seafront. Not forgetting the Prison Block lookalike BIC center which when used for Political Conferences causes vast amounts of lost revenues to local businesses due traffic stops and survey-lance etc.

    In fact I was going back to my car with three loaves of bread in the nearby town of Boscombe when a helicopter came right on top of me asking what I had in the bag. You really couldn’t make this up, they are as I said legionary for failed planning projects. With this in mind it makes you shudder to think they are running the country.

    Information courtesy of agpcuk

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