Fast spending cuts push economy from fastest quarterly growth for a decade towards zero

Today’s growth figures are the latest evidence the coalition’s rapid spending cuts have pushed the UK economy from the fastest growth for a decade towards zero.

Today’s GDP growth figures (pdf) are the latest evidence the coalition’s rapid spending cuts have pushed the UK economy from the one of the two equally fastest quarters of growth for a decade towards zero, writes Cormac Hollingsworth

A year ago, the fastest growth since 1999 cut the deficit by £10.8 billion, that’s on top of the £2bn of the VAT rise. It is possible that St Paul’s clearing out the tents is not some craven capitulation but an expectation that certain other political constituencies will start praying very hard for a Labour-like growth miracle.

Graph 1:


After all, in Q2 and Q3 2010 the UK economy fourth quarter growth exceeded the 2.1% average since 1998. Since then the economy has been on a downward track to today’s value that over the past four quarters from Q3 2010 – Q3 2011, the economy has growth by only 0.5%.

The slow growth of the current year according to the city forecasts is expected to increase the deficit £13bn. (calculated from the current Treasury consensus forecast for public borrowing of £129.8bn).

The problem for the coalition is that low growth increases borrowing over the life of the parliament.

So while the OBR forecast in June 2010 that borrowing would be £89 billion in 2012-13, the consensus forecast is for that to be £113.6bn. The outlook is bleak; expect lots of Tories at prayer in St Paul’s very, very soon.

See also:

Unprecedented growth of 1.3 per cent needed for OBR to meet its projectionWill Straw, October 31st 2011

With Plan B, we can have a good economy for a good societyHoward Reed, October 31st 2011

The coalition is failing to tackle youth unemploymentRuwan Subasinghe, October 26th 2011

For every extra £4 spending is cut, it only cuts borrowing an extra 75pCormac Hollingsworth, October 18th, 2011

Inflation report is bad news for Osborne’s targetsTony Dolphin, October 18th, 2011

Like this article? Sign up to Left Foot Forward's weekday email for the latest progressive news and comment - and support campaigning journalism by making a donation today. 

42 Responses to “Fast spending cuts push economy from fastest quarterly growth for a decade towards zero”

  1. False Economy

    RT @leftfootfwd Fast spending cuts push UK economy from fastest growth for a decade towards zero: http://t.co/dJ0hV50M writes @CormacHolly

  2. Elrik Merlin

    Fast spending cuts push UK economy from fastest growth for a decade towards zero: http://t.co/eK9OlQ45 writes @CormacHolly #growth

  3. MAB

    Fast spending cuts push UK economy from fastest growth for a decade towards zero: http://t.co/eK9OlQ45 writes @CormacHolly #growth

  4. DBTS

    Fast spending cuts push UK economy from fastest growth for a decade towards zero: http://t.co/eK9OlQ45 writes @CormacHolly #growth

  5. E Azicate

    Fast spending cuts push UK economy from fastest growth for a decade towards zero: http://t.co/eK9OlQ45 writes @CormacHolly #growth

  6. Geoffrey Pearson

    RT @leftfootfwd Fast spending cuts push UK economy from fastest growth for a decade towards zero: http://t.co/dJ0hV50M writes @CormacHolly

  7. Michael

    Fast spending cuts push UK economy from fastest growth for a decade towards zero l Left Foot Forward – http://t.co/AABP1grh

  8. Rob the crip

    Your not saying Brown had it right are you, and that we would now be booming, because if you are then sadly your dreaming, the world is down on it’s knee’s and again to day they said it was the Financial sector not banking which is pushing growth. and of course solicitors and accountants, says it all really

  9. Andrew G

    RT @leftfootfwd: Fast spending cuts push UK economy from fastest growth for a decade towards zero http://t.co/BrIFv7I6

  10. Juan Voet

    RT @leftfootfwd Fast spending cuts push UK economy from fastest growth for a decade towards zero: http://t.co/dJ0hV50M writes @CormacHolly

  11. Political Planet

    Fast spending cuts push UK economy from fastest growth for a decade towards zero: Today’s growth figures are the… http://t.co/I0i7RVie

  12. Deb

    GRAPH: The picture that paints a thousand words describing how much damage Osborne has done to the economy: http://t.co/eK9OlQ45

  13. Noxi

    RT @leftfootfwd: GRAPH: picture that paints a thousand words describing how much damage Osborne has done to the economy http://t.co/88KmLT7m

  14. Noxi

    RT @leftfootfwd: GRAPH: picture that paints a thousand words describing how much damage Osborne has done to the economy http://t.co/wK76hofe

  15. Pink Humanist

    GRAPH: The picture that paints a thousand words describing how much damage Osborne has done to the economy: http://t.co/eK9OlQ45

  16. Pete Jefferys

    GRAPH: The picture that paints a thousand words describing how much damage Osborne has done to the economy: http://t.co/eK9OlQ45

  17. Ignore Osborne’s spin; a jobs recession is inevitable | Left Foot Forward

    […] also: • Fast spending cuts push UK economy from fastest growth for a decade towards zero – Cormac Hollingsworth, November 1st […]

  18. DBTS

    GRAPH: The picture that paints a thousand words describing how much damage Osborne has done to the economy: http://t.co/eK9OlQ45

  19. Just Say Noam

    RT @leftfootfwd: GRAPH: picture that paints a thousand words describing how much damage Osborne has done to the economy http://t.co/wK76hofe

  20. Pete

    RT @leftfootfwd: GRAPH: picture that paints a thousand words describing how much damage Osborne has done to the economy http://t.co/wK76hofe

  21. Roblackenby

    GRAPH: The picture that paints a thousand words describing how much damage Osborne has done to the economy: http://t.co/eK9OlQ45

  22. Damien Short

    RT @leftfootfwd Fast spending cuts push UK economy from fastest growth for a decade towards zero: http://t.co/dJ0hV50M writes @CormacHolly

  23. Dr John Lever

    Fast spending cuts push UK economy from fastest quarterly growth for a decade towards zero http://t.co/776rGcDx

  24. Alex Braithwaite

    RT @leftfootfwd: Fast spending cuts push UK economy from fastest quarterly growth for a decade towards zero http://t.co/Oy0OoBsc

  25. “Underlying picture remains weak”, “paltry”, “bumping along the bottom” – growth reaction | Left Foot Forward

    […] to this morning’s growth figures, which saw the UK economy grow 0.5 per cent in the third quarter of 2011, will not have […]

  26. Daniel Elton

    @unisontweets @UNISONActive @unitetheunion GRAPH: How growth fell off a cliff with Osbornomics: http://t.co/f2w8Y0Sv on @leftfootfwd

  27. Daniel Elton

    @MaryxMaguire @punite GRAPH: How growth fell off a cliff with Osbornomics: http://t.co/f2w8Y0Sv on @leftfootfwd

  28. OccupyLFS

    RT @leftfootfwd: Fast spending cuts push economy from fastest quarterly growth for a decade towards zero http://t.co/REJzbdMY #occupylondon

  29. NORBET

    GRAPH: The picture that paints a thousand words describing how much damage Osborne has done to the economy: http://t.co/eK9OlQ45

  30. Darren Johnson

    Fast spending cuts push economy from fastest quarterly growth for decade towards zero http://t.co/s0XBkVuD <green investment is Plan B

  31. Chris Witte

    @GregBarkerMP Fast spending cuts push economy to zero growth http://t.co/dqL9aQeC so you single handedly push UK back into recession next Q?

  32. Kelly

    RT @leftfootfwd: Fast spending cuts push economy from fastest quarterly growth for a decade towards zero http://t.co/REJzbdMY #occupylondon

  33. Anti-Cuts Alliance

    GRAPH: The picture that paints a thousand words describing how much damage Osborne has done to the economy: http://t.co/eK9OlQ45

  34. Kevin Richards

    We need a Plan B George : Fast spending cuts push economy from fastest quarterly growth for a decade towards zero http://t.co/1dcbjgRv

  35. Mark Meredith

    GRAPH: The picture that paints a thousand words describing how much damage Osborne has done to the economy: http://t.co/eK9OlQ45

  36. Reenie

    RT @leftfootfwd: Fast spending cuts push #economy from fastest quarterly growth for a decade towards zero http://t.co/LmHG7Dy1 | #UK

  37. Look Left – G20 fails to calm the storm as eurozone crisis grows | Left Foot Forward

    […] cuts have pushed the economy from the fastest quarterly growth for a decade towards zero; more from Cormac Hollingsworth: “A year ago, the fastest growth since 1999 cut the deficit by £10.8 billion, that’s on top of […]

  38. TheCreativeCrip

    RT @leftfootfwd Fast spending cuts push UK economy from fastest growth for a decade towards zero: http://t.co/dJ0hV50M writes @CormacHolly

  39. Dawn Langley

    RT @leftfootfwd Fast spending cuts push UK economy from fastest growth for a decade towards zero: http://t.co/dJ0hV50M writes @CormacHolly

  40. Osborne set to borrow billions more than Darling was projected to | Left Foot Forward

    […] also: • Fast spending cuts push economy from fastest quarterly growth for a decade towards zero – Cormac Hollingsworth, November 1st […]

  41. Kellner: The public don't like the Tories, but they've signed up to their economic argument | Left Foot Forward

    […] Fast spending cuts push economy from fastest quarterly growth for a decade towards zero – Cormac Hollingsworth, November 1st […]

  42. Osborne is perilously close to failing to cut borrowing at all | Left Foot Forward

    […] Fast spending cuts push economy from fastest quarterly growth for a decade towards zero – Cormac Hollingsworth, November 1st […]

Leave a Reply