Wednesday, 27 April 2011

Osborne's flatline

Today's GDP figures show growth of 0.5% in the first quarter - against OBR predictions of 0.8%.  But that 0.5% does no more than offset the effect of the snow at the end of 2010.

In other words, the economy is flatlining.  And that's before the cuts take effect - that will happen during the present quarter.  So what sort of denial does it take for the Treasury to talk of "returning to growth"? And what does this mean for tax receipts.

And on what basis can the BBC claim that this alleviates the threat of a double-dip?

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