UK Recovery Struggling

The Government came under fire yesterday following the announcement of economic growth of just 0.2% in the three months to June, a drop from the 0.5% in the previous quarter.

The data from the Office of National Statistics indicated that the largest drops were in the manufacturing and production sectors which shrank by 0.2% and 0.3% respectively. The ONS suggested that one-off “special events” including the Royal Wedding, and its extra bank holiday, and the unusually warm April weather may have had a significant impact on growth.   
 
Chancellor George Osborne denied the news gave substance to criticisms of The Government’s economic policy, contrasting what he claimed to be a stable economy in the UK with those Eurozone economies which have been struggling. “We are providing stability in Britain, and are a safe haven in the storm,” Mr Osborne said.

However Ed Balls, Labour’s Shadow Chancellor accused Mr Osborne of “complacency”, suggesting that the fall in growth was the result of economic policy. He commented: “Fundamentally, in the last nine months our economy has flatlined, it’s not grown at all. And I’m afraid the conclusion is that George Osborne’s policies have choked off the recovery.”