UK In Longest Double-Dip Recession On Record
The Government has come under pressure for its economic policies after official figures confirmed Britain is in its longest double-dip recession on record.
The Office for National Statistics (ONS) has confirmed a GDP drop of 0.7% in the second quarter.
The estimate is far worse than forecasts for a 0.2% contraction and the steepest fall since the first quarter of 2009.
British Chambers of Commerce director general John Longworth said: "It is clear that Britain is in the midst of the most prolonged period of stagnation it has faced in decades.
"Ministers can't expect firms to bust a gut to grow if they fail to take a long-term approach to creating an enterprise-friendly environment."
The fall may be revised in coming months, but it suggests the UK is mired in the longest double-dip recession since quarterly records began in 1955 and it is believed to be the longest since World War II.
Statisticians have not been able to put a number on the impact of the additional bank holiday granted for the Queen's Diamond Jubilee - but have admitted it is a "significant" hit.
Further dampening comes from the sour summer and torrential downpours throughout April and June which dampened demand for clothing, food and leisure activities as the nation's builders struggled to get out to work.
This was underlined in the construction sector figures, which showed a mammoth 5.2% decline as the dismal weather stifled projects.
Chancellor George Osborne said the official figures were disappointing and confirmed the country's deep-rooted economic problems.
"We're dealing with our debts at home and the debt crisis abroad. We've made progress over the last two years in cutting the deficit by 25% and businesses have created over 800,000 new jobs," he said in a statement.
"But given what's happening in the world we need a relentless focus on the economy and recent announcements on infrastructure and lending show that's exactly what we're doing."
Although the GDP drop stunned economy watchers, the markets had an encouraging response, with the FTSE 100 up around 0.3% in mid-afternoon trading before easing to close at 0.02% down.
The ONS said that output from the service industries including the financial sector was down 0.1%, manufacturing and other production industries were down 1.3% and construction fell 5.2%.
Shadow chancellor Ed Balls said the Government "should wake up and listen" and he told Sky News: "The figures speak for themselves and are truly shocking.
"It doesn't have to be this way. I do think that David Cameron and George Osborne need to wake up and listen."
TUC general secretary Brendan Barber has accused the Government of using hollow rhetoric over the worsening situation.
"Ministers cannot just repeat the same old excuses - Europe, bank holidays and the previous government - for the economic mess they are presiding over.
"They need to change course as their policies are causing permanent damage to our economy."
Institute of Directors senior economic adviser Corin Taylor said: "Today's figures come as a severe blow to business.
"The eurozone countries show that we absolutely cannot afford to waver from the deficit reduction programme, but there are several steps the Government must take to boost the economy through supply-side reforms."
what do you think?
Well done Scamoron ,what are you going to blame this one on ?? the jubilee ,the weather ...........You were warned and now look what you have done !! you and your cohorts are useless.Today we see you trying to worm your way out of this cash in hand fiasco.Yet another u turn.Pathetic.
cant wait to see what excuses cameron his hooray henry pals and of course all the tory supporters come out with. they are already blaming the queens jubilee celebrations, rain, bank holiday.etc. of course theres alwas the obligatory labour government fault. its time thet took their heads out of the sand or anywhere else they seem to have it and realised their strategies are simply not working. another two years with these clowns and who knowsw how it will end.
Forget all that !!! The reason things are in decline are all carefully planned. Industrial production is being " transfered " overseas. It is all part of the Bilderburg conference plan to raise the standard of living of third world countries -- " at our expence ". Challenge your local MP if you dont want to believe me.
Well we did raise our standard of living at their expense in the first place. And what better way of cutting immigration than to cut the reasons for them to come here.
No complaints from you then, you`re going to spread the word among the others on here ?
To be fair why shouldn't they have a bigger slice me the pie? We have been far greedy. This is all orchestrated.
And right on cue "previous governments fault"
I thought it was Greece's fault, no I meant Spain's fault (or was it Italy's fault?) no, that's right it was Brussel's fault, Frances' fault? Or was it Germany . . . . . . ?
It was the the cold weather and the hot weather to blame and the Queens Jubilee and the Royal wedding to blame, it wasn't Gideon's fault at all, not him or Dave, no siree Bob.
Are MPs required to possess any educational qualifications to do their "job"?
Is there a plan B???
I think they are on to Plan H by now Steven.
Yes ! " Balls" will continue with things to the satisfaction of the Labour lot in three years time.
Brian E Gorton
Dont blame anyone but yourself,If you vote them in you pay the price.Lib,Con,Lab.All the same.Greed is the No1.Multi-nationals dont care about people.just on the take.BUY ENGLISH.
We don't really have a choice though do we..the system is too contrived and designed to keep only the elite and rich in charge...who ironically will be looking after themselves and their like....
1. Cut red tape and allow business to "do" business without the dead hand of government 2. Cut government and the waste back to pre 97 levels 3. Repeal the climate change wind farm subsidy nonesense & build a reliable energy source i.e. nuclear 4. Repeal membership of european human rights legislation and deport foreign criminals 5. Get rid of Cameron 6. Repeal all diversity and racism legislation & sack all the diversity lawyers 7. In/Out referendum on EUSSR unless it's disintergrated within the next 6 months (probable) 8. Get rid of Cameron 9. Sort the West Lothian problem to prevent the distortion of allowing scots to vote on purely english issues 10. Did I mention get rid of Cameron?
We get it - you're a UKIP fan. They're idiots too.
Didn't you read the news about Japan's nuclear power station, recently? Look at all the trouble that caused.
This is all orchestrated to fail. More centralization of power, more control. We are heading for pure globalization. We already see the forming of a global army in nato next they want a global bank that will be protected by the global army. Global government after that. We are seeing it happen and we are doing nothing.
We are all being duped. Our media, governments, all controlled by the elite.
Bilderberg, Rothschilds one world order etc? Remember there is misinformation on both sides...
I've got an idea.....let's give more money to the banks so they can give themselves more money to gamble away, let's increase taxes and lower wages for the decent working folk who actually do something decent for a living, let's demonise people that can't get a job because wages are too low and have a go at people that might offer to do a cash deal so the bankers can't get their mitts on that too...let's hold an Olympic games that costs 18 billion odd and continue to give billions of pounds overseas even though we have to borrow to keep our own banks in business do they can continue to loan us our money back at ridiculous rates, on top of that let's lower taxes for three very rich because that will really help the economy,oh and let's not forget the M.P.s flipping we ignored and expenses when they all should have been prosecuted, while we are at it let's invent a phoney terrorist threat and kill hundreds of thousands of innocent people for the sake of oil heroine and minerals so that the arms dealers can take in all or hard earned taxes.....you really couldn't make it up...welcome to England.
Suddenly again it's a eurozone problem, last week it was the previous govt. Clutching at straws blaming the jubilee. What's next? "it was the olympics fault" We have to accept, no-one in the entire world has the economic answer. Unfortunately for Britain, we're also hit with an utterly inept Chancellor.
same old Tories
So it was the jubilee and the wet weather ? Just like it was the snow in the winter and the woes of the eurozone, Come september it will be the Olympics. What kind of fools do these politicians take us for. At least they are addressing the more pressing issues of same sex marriage & House of Lords reform. Chris R. My £2.50 is in the post and book me in for the political re-education program as a trainee commisar
Still the Olympics start on Friday - so we can be proud of that and the value for money that has given us.
well George you can always go back to plan B .its labour fault .haaaaaaaaaaaaaaaaa what a clown