There’s been a last gasp hurrah for Labour’s economic policies. As the BBC notes:
New figures showing the biggest quarterly drop in UK unemployment for three years have re-energised the political debate over the best way to boost the country's economic recovery.
The number of people out of work in the UK fell by 49,000 to 2.46 million in the three months to June, although Scotland saw a 0.2% increase in its rate of unemployment to 8.4% in the same period.
Let’s be clear: Labour was the government for part of this period and it was Labour’s plans that resulted in this fall.It’s a long way from all good news: most of the new jobs are low grade part time. But it shows that Labour was delivering, and won’t any more.
At the same time it’s clear now the ConDems are not delivering. As the Guardian noted this morning:
Fears that Britain could slip into a protracted depression intensified tonight as markets took fright at the US central bank's wary economic outlook, the Bank of England's own warnings on the UK, and a slew of gloomy data.
With businesses and households fretting over swingeing public sector spending cuts and shaky economic prospects around the world, the Bank cut its growth outlook and warned that Britain faces a long and "choppy recovery".
Worries about job prospects, soaring food prices and the general economic outlook amid government cutbacks have sent consumer confidence plunging to a 15-month low.
Nationwide's monthly consumer confidence index released today also shows households are growing more wary about making major purchases, are more cautious about the housing market and increasingly believe their income will fall over coming months.
The reality has dawned: the ConDems and their friends around the world intend to decimate economic activity in pursuit of their dogma. The best people can hope for is low grade, part time, unskilled work. And their reaction is obvious: they are stopping spending.
There is no prospect of a private sector recovery in this environment. This is double dip recession territory, and depression to follow.
That’s the reality of Osbornomics.