Monthly Archives: December 2013

The real story of Cameron’s economy

For many people, this is no recovery at all

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George Osborne was in self-congratulatory mood in the House of Commons this morning as he delivered his Autumn Statement. Growth has returned to the economy; borrowing is falling; we are on the road to recovery. Yet the complacent Chancellor failed to recognise the cost-of-living crisis that is engulfing hard-working people in Birmingham and across the country. For many people, whose wages remain low while prices soar, this is no recovery at all.

Osborne remains convinced that his economic strategy is working, and reeled off statistic after statistic that seemed to prove his point. The reality, however, is that despite growth returning, the economy is still under-performing – growth is significantly lower than it was forecast to be in 2010, and the deficit will still be £79 billion in 2015, after we were promised it would be eliminated by then. Three years of stagnation means that Osborne has missed all of his economic targets, and people are suffering as a result; for 98% of the time his government has been in office, prices have risen faster than wages. This is not a recipe for economic success. The plan has been hurting, but it has not been working. While those right at the top continue to  enjoy their tax cuts, everybody else has to contend with bills becoming more unaffordable and stagnating wages, leaving people up to £1,600 a year worse off under the Tory-led government.

Busy patting himself on the back, the Chancellor offered little to those whose living standards are suffering the most. On energy costs, he stopped short of matching Labour’s promise to freeze prices, meaning people in our city will be forced to choose between heating and eating this winter and next; there are more welfare cuts to come, plunging vulnerable people further into difficulty; there remains no commitment to introducing a living wage, or even a substantial increase in the minimum wage. Every time Osborne has the chance to make life easier for ordinary people, he makes things worse. There were some token measures such as the cancellation of the planned rise in fuel duty, but really this was an Autumn Statement that did nothing substantial to help ordinary people. Even if the economy continues to grow, Birmingham residents will rightly have little faith in a plan that does nothing to improve their lives.

Today’s statement did not change anything. The government continues to allow those at the top to get richer while ignoring the declining living standards of the majority of people. The economy may finally be growing again, but George Osborne is still doing nothing to ensure that the recovery reaches everybody. For many people in Birmingham and in Britain, this is no recovery at all.

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