July 23rd, 2010

+ + + UK GDP Increased 1.1% in Q2 + + +

The ONS today reported that Gross Domestic Product (GDP) increased 1.1% in the second quarter of 2010, compared with an increase of 0.3% in the previous quarter. That is much higher than expected, almost double what consensus economists were forecasting. Good news for the economy but terrible news for the agreed Balls-Byrne line that public sector cuts “risk a double dip recession”. If this number is not rogue it blows IMF and OBR predictions out of the water on the upside. It also blows Labour’s political strategy…

This will cause anguish in Labour circles (whatever they say publicly) because if the Coalition gets the economy to bounce and grow strongly by 2014, Labour faces becoming the third party. Labour needs bad news to thrive electorally…


  1. 1

    “Labour needs bad news to thrive electorally…””

    Here’s a tip from Tuscany Labour people, if you urgently need some bad tidings, bruing back Gordon as your leader: that should do it nicely.

  2. 2
    Praguetory says:

    There is no Third Way. Bye Bye, Labour.

  3. 3
    Dissenter says:

    Surely it vindicates Labour strategy as their policy produced the growth?

  4. 4
    Labour High Command says:

    It’s only because of our policies to shrink the economy so dramatically that the Tories are benefitting from this rebound. It’s not fair to judge the coalition when they started from such a low base.

  5. 5
    Howard Joseph says:

    Shame the coalition can’t really claim credit for that recovery really. Hate to say it, but any recovery in Q2 will be more down to the decisions Darling made than anything the new lot have done.

  6. 6
    Unsworth says:

    “If this number is not rogue” – we shall see, but I’d expect Q3 to show a lower figure in the normal course of events anyway.

  7. 7
    jdennis_99 says:

    How so? 2nd quarter is April-May-June. Labour were out less than half-way through that.

  8. 8
    M Hall says:

    How is this terrible news for Labour? The cuts haven’t taken effect yet and thus haven’t yet impacted on economic data.

    If anything, it supports Labours argument because the Tories said the previous Government’s growth forecasts were hugely optimistic.

    It also proves that departmental cuts of up to 40% are unnecessary as a greater proportion of the deficit will disappear due to economic growth and increased tax returns.

  9. 9
    Olly boy says:

    Bye bye Labour.

  10. 10
    Jill says:

    As noted, surely this is LABOUR’S growth?! We’ll know if these current idiots are wrong if they manage to reverse it!

  11. 11

    True, but it wrecks the Labour HQ line of attack.

  12. 12
    Sir Lancelot Spratt says:

    Im a committed fan of the coalition but the spending cuts have really not had an opportunity to bite yet – the planned wave of job losses have not taken place – the real effect on the economy probably wont even start to be seen till the fourth quarter of 2010.

    is it not actually a vindication of new labours economic strategy so far (much though it pains me to say it)?

  13. 13
    Praguetory says:

    Yes, isn’t it amazing how much confidence has returned since Labour were ejected?

  14. 14
    This is a global recovery and I love mantra's. says:

    It started in America.

  15. 15
    too much information says:

    i had one of those sticky poos this morning after eating sweet and sour chicken ball last night

  16. 16
    purpleline says:

    Not so. It was the great depression cloud that was lifted from the country when we got rid of that shower and madman McMental.

    Also weather came into it, as generally after a severe cold winter, construction was up also due to a new survey.

  17. 17
    Unsworth says:

    Labour ‘High Command’. Exactly. Fucking centrist, statist control freaks, the lot of them. Kim Il Brown – and just about as competent as his opposite number in North Korea.

  18. 18
    Brigada Rossa says:

    Tuscan Tony,you are living in red tuscany,you are surrounded by communists,and you like it there. You are a fraud.

  19. 19
    Technomist says:

    It is ture of ANY opposition that they prosper mainly when they can create disharmony and stir up unhappiness.

  20. 20
    Mr Ned says:

    It is a sign that pumping 200 Billion into the economy via QE creates growth. Well if pumping 200 billion pounds into the economy, and borrowing an additional 170 billion had failed to create a bit of momentum to break into growth, then it would have been an outright disaster.

    This does NOT mean that putting the country into debt for generations was the right thing to do.

    Let us hope that this growth can now be used as a springboard for real enterprise and trade and inward investment (remember that old idea?) to create real growth in the economy that is not based on ever increasing levels of our debt.

  21. 21
    Dissenter says:

    Still their spending, have any cuts been made yet? VAT rise come in yet? Nothing in the budget will have worked its way through, spending review to come

    Not saying Labour will not suffer from it if growth continues, but to argue the Coalition produced this growth is daft, what exactly have they done since May that could have produced this growth?

  22. 22
    MadMitch says:


    As always you are a sucker for wishful thinking when it comes to Tory / Coalition politics. More likely an inside job by the ONS to cause Dave the Rave problems.

    First cut GDP figures are two months real, one month guess, 0.7% real and 0.4% of extrapolation. Add in the weather issues during the first six weeks of 2010 and it all starts to make sense.

    Betting on a downgrade in 4 weeks time?

  23. 23
    Mr Ned says:

    Nope it is the banker’s growth as it comes of the back of 200 billion quid of QE remember!

  24. 24
    Unsworth says:

    I’d agree with much of that. I was surprised at the palpable change of tone in the City as soon as the election results came in. That was enhanced after the coalition got over its initial teething problems.

  25. 25
    StrongholdBarricades says:

    It is lucky that they will have “a fresh start” after the completion of the leadership election

  26. 26
    Dissenter says:

    What has the city got to do with GDP figures? These are driven by industry not the markets.

  27. 27
    Dissenter says:

    Problem is Labour will claim this as their growth, if it then dips or falls after the cuts start they can say coalition wrecking a working policy.

  28. 28
    rosler says:

    Typically there is a 6 – 12 month lag between a business taking a decision to expand and having an impact on overall GDP. To suggest that government decisions taken between May and June have impacted this number is pure fantasy.

  29. 29
    Peasant says:

    Um Guido, these growth figures are LABOUR’S figures. You cannot attribute the economy to Osborne until his tax changes come into effect which won’t be until next year.

    It just goes to show that Darling’s budgets were right.

  30. 30
    Mr Ned says:

    It is a sign that pumping 200 billion in QE and a further 170 billion in deficit spending created the momentum for some growth to occur.

    Had labour still been in power, they would still be cutting 60 billion from the budget and not saying where the axe would fall.

    They also would NOT be trying to boost enterprise and inward investment. They would be borrowing more than the coalition is and guaranteeing a double dip recession as the rating agencies would be downgrading our debt, wich would cause interest rates to rise at the point where our banks are facing increasingly testy conditions from sovereign debt in Southern Europe.

    I am very very glad that labour are no longer in charge of the economy. They had no ideas left.

    What we need is massive inward investment from private enterprise, a massive boost for exports and a drive to get money into this economy from abroad.

  31. 31
    MadMitch says:

    Dennis the pennis

    First cut growth figure is 2 months real numbers and one month extrapolation.

    That is April and May are real, June is finger in the wind.

    Some of the growth will be due to the 6 weeks of bad weather at the start of the year lowering the background rate of expansion in Q1.

    Question for all of us is what happens next?

    Tesco et al reporting a slowdown.
    World Cup bounce quite marked but a week shorter than usual.

    Consequently downgrade in the second cut of the figures for Q2?
    Big issue for the Con Dem Nation is what happens in Q3?

  32. 32
    Sir William Waad says:

    The cuts have not had any effect on individuals or businesses yet. Instead, we have a boosting of confidence that Government will at last start behaving in an adult fashion, financially. We should expect a slowdown in growth over the next twelve months as the cuts work through, but probably no ‘double-dip’.

    At some point the banks will become solvent and open for business again. Also, consumers may largely have completed their own debt reduction (from the highest average levels of personal debt ever seen anywhere in the world). Both these factors will feed into growth.

  33. 33

    You may be right.
    There is no one in the Labour Party who tried harder to bring about economic collapse than Gordon.

  34. 34

    Twisting facts to suit this or that argument is the norm, but no worries leave it to the labour thickos to drag themselves down further in the mud . . . . . roll on political reform in 2100 or the century after that

  35. 35
    Sir William Waad says:

    Not much of the QE billions actually ‘went into the economy’. Most of it just went into the banks’ reserves to keep up the pretence of solvency. It is little more than a set of accounting entries; debit government debt, credit banks’ reserves.

  36. 36

    Agree. Only this final week of July is showing any sign of growth.
    First 3 weeks of July were all abysmal on L4L.

  37. 37
    MadMitch says:


    Still feeling a bit thin skinned are we?

    Surely the proprietor of an esteeemed site such as “Spunky Spunky” should be able to handle a lit bit of rough and tumble, as the Olympic champion said to the aspiring FS sort of way?

  38. 38
    Dave Ward says:

    This is from Q2 so doesn’t include any data from post May. If anything it strengthen’s Labour’s argument that public spending was driving a weak recovery, and cuts are now the most dangerous thing.

  39. 39
    MadMitch says:


    As always you are a sucker for wishful thinking when it comes to Tory / Coalition politics. More likely an inside job by the ONS to cause Dave the Rave problems.

    First cut GDP figures are two months real, one month guess, 0.7% real and 0.4% of extrapolation. Add in the weather issues during the first six weeks of 2010 and it all starts to make sense.

    Betting on a downgrade in 4 weeks time?

  40. 40
    Empire Loyalist says:

    Eire is a failed experiment.The obvious solution for the southern Irish counties is to escape the euro and return to the pound and Union.


  41. 41
    Taxfodder says:

    I love the old “build them up” before bad news ploy its a great strategy ”

    Go Mary tell the junior partners how its done….

  42. 42
    Trev says:

    I do not think labour risk becoming the third party (unless it is behind the greens).

    If the coalition do well – then surely there will be pressure (not least from the public) and incentive for them to stay together nin an electoral pact.

    I am not sure about nthese figures – I was not sure about them under labour and I have not changed since. How much of the ‘growth’ is due to a downgrading of previous growth?

    Still if its valid I will take it. We need the economy to recover, but will growth translate into appropriate revenues?

  43. 43

    Prepare rocket Ajax for relaunch .. again.

  44. 44
    Mr Ned says:

    True, this growth figure is due to the massive amount of money pumped into the economy last year finally feeding through. It is QE and massive government borrowing, so is largley a mirage that came in late. Labour were hoping that the growth would come in Q4 2009 and Q1 2010, but the economy was too weak even for that. It has taken about half a year longer to feed through, but what happens next…?

    This was labour’s last throw of a desperate dice to buy some good figures before the election. If they had won the election the economy was still going to be screwed because labour had NOTHING to replace QE and Borrowing with as a means to stimulate the economy.

    Hopefully the coalition can build on this to get inward investment and exports booming.

  45. 45

    This sort of news makes me feel warm inside, not because the economy is improving (which is good), but because lefty’s everywhere will be seething.

  46. 46
    Dissenter says:

    Not really the issue anymore what Labour would have done, they are now an opposition party and only need to attack, I cannot see how these figures are anything other than a boon for Labour in opposition, as they increase the likelihood of dips in Q3 and Q4 (which will be Daves) that they can attack, in comparison to their ‘own’ growth.

  47. 47
    Anonymous says:

    Last time I checked, Q1 was Jan, Feb, March and Q2 was April, May, June.

  48. 48
    Peter Grimes says:

    It might look good for the moment, but if it falls off later in the year, the ZaNuLieBor lying gits will say ‘We told you so!’.

    The last misgovernment spent money we didn’t have like water during its last year, notwithstanding that there were even more promises. It is bound to have an uplifting effect on the economy, but as Charles Dumas of Lombard said a short while ago, the re-stocking is only likely to be a one-off!

  49. 49
    Cato Street Conspirator says:

    I hate to say this but this growth took place when Labour’s policies were still relevant. The Tory policies haven’t kicked in yet. Expect to see a decline when they do.

  50. 50
    Penfold says:

    One swallow doth not summer make.

    One set of statesticals doth not make an economic boom.

    Let wariness and care prevail.

    Let great joy explode after 4 sets of statesticals.

    And let the great labour demons implode.

  51. 51
    sockpuppet #4 says:

    Welcome the 3.0 way.

  52. 52
    Rip Van Winkle says:

    I’ll believe these figures only when the tax income to Government confirms it. Tax income is real – GDP (including the £150bn of Government borrowings) is bullsh*t.

  53. 53
    Anonymous says:

    Don’t get too excited about 1.1% what is the margin of error, there were errors under Gordoon, say that error is 1% ,+1 great indicator, -1 whoops barely holding our own.

  54. 54
    Dissenter says:

    But the June figure is a guess, and even with the greatest will would not be affected by a Government only weeks old.

  55. 55
    Crowing Tory says:

    Brown will go down in the history books as a failure.

  56. 56
    nurse says:

    See Gordon does read this blog! They even let him use the keyboard today

  57. 57
    Anonymous says:

    Good reply Mr N, however the control of inflation will be crucial. I believe the US are considering turning on the floodgates of QE again as their fiscal stimulus is stalling!

  58. 58
    The Labour Sh*t Pile says:

    It’s true, despite the Labour financial disaster everyone feels better for some reason.

  59. 59
    Dr Bananas says:

    Dissenter, you are a New Labia troll.

    Get a proper job.

  60. 60
    Hamish Macbeth says:


    Is that where the good socialist Polly Toynbee has her third home?

  61. 61
    Unsworth says:

    And industry raises capital where, exactly?

  62. 62
    That's News says:

    Yes, Mr Ned. And ‘boosting’ the economy by creating hundreds of thousands of non-jobs, by borrowing even more money at the same time as making cuts, but not really making cuts…

  63. 63
    Rip Van Winkle says:

    ‘At some point the banks will become solvent…’

    See ‘Japan’ for how long that can take.

  64. 64
    Budgie says:

    Why isn’t it the issue anymore? It was Labour that got us into this mess in the first place.

    We are now comparing what the Condems are doing (which is poor – they could, but won’t, scrap DfID and membership of the EU, and sell the BBC to realise £billions), with what Labour did (£200bn money printing) and what Labour would do if in power (run us into the ground).

  65. 65
    Agent 99 says:

    Just travelling across Europe and spotted the Wall St Journal in an airport and page 19 of the Business and Finance section reports that Nokia profit has dropped 40% YES 40%!!!! in the second quarter.
    Its the high end stuff apprently but chucking nokias makes them high right?

    Of course any links between the timming of the demise of the Nokia throwing lunatic in No 10 Mr Gordon McRuin and the dramatic loss of this Nokia revenue is purely circumstancial of course

    The McJonah curse strikes again from the Grave………… MWWWAAhaaaahhahahah *echoes*

  66. 66
    Mr Plum says:

    Yep got the feeling that we will all be let down gently into impoverishment through high inflation, low interest rates and pay freezes

  67. 67
    Brutal, degenerate, trigger happy, criminally minded, barely literate, violent, lying Met polisman says:

    Fooking bad news this

    Us polis need economical dispairs in order that scum will take to the streats in protest
    Any slags wot is protestin must be brutally assaulted and battered.
    Them gobby little female slags deserves extra baton strikes dont they.

    Wee nose we can rely upon the CPS to let the time window for an assault charge against us to elapse.

    Blair Peach, Jean Charles, Ian Tomlinson and the 1000 slags wot av died in polis custardee can fook off HAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHA

  68. 68
    Budgie says:

    Dissenter … you are dozy. The City (taken as a whole) is the biggest exporter we have got.

  69. 69

    BG that is true, the region is of the communist variety here, however the key point is that in reality politics has little influence here as most people (including the public sector and the politicians) choose to ignore the edicts unless they make sense. The net result is a country far more free ‘n libertarian than England.

    People are rarely represented by their leadership.

  70. 70
    Just passin through says:

    Ed Balls etc by the way desperately needed the double dip and would not care about the state of the country but prey daily for it to happen for political ammo. Its all about them and always has been.

    hopefully they are gone for a generation if not for ever.

  71. 71
    Mr Ned says:

    Yup, which is why it took so long to seep through from banks balance sheets, into lending (at still a depressed level) into the economic figures. As I say, labour were hoping that the QE and 170 billion of their own extended borrowing would create these current growth figures at the end of 2009 in time for an election boost.

    Shame that labour had nothing else left to offer the country by way of stimulating the economy, so it is a good job that they are no longer in charge of it!

  72. 72
    Billy Bragg says:

    “Ill see you later!”

  73. 73
    Brigada Rossa says:

    This is a classic.

  74. 74

    I have been told she like to give out her pad is in Tuscany whereas its probably Umbria. Bit like saying to people you live in Hampstead Heights whereas your actual address is Crouch End (and Umbria is very Crouchy-Endy)

  75. 75
    Common Sense says:

    Labour cannot lay claim to anything that happens after they were dumped by the electorate – any bounce is down primarily to the return of market confidence – ie the actual belief that things will improve. No such confidence existed under Jonah Brown – in short he had an inverted Midas touch and everything he came into contact with turned into shite. The only imponderabls are how can people possibly suggest Labour’s policy might have been right and how can so many have voted Labour? It seems Gordon would have had to burgle, sodomise and piss on some voters in order to disenfranchise them. Its the great Labour con – creating a them and us – rich and poor web of lies to secure votes.

  76. 76
    Apocolypse now says:

    If its a Labour program that 3.0 must be a downgrade right?

  77. 77
    Sir William Waad says:

    Labour’s method of avoiding a hangover: keep drinking.

  78. 78
    AC1 says:


  79. 79
    Mr Ned says:

    No it showed that labour used QE + 170 billion of debt to create the mirage of growth, and even then they could not get the growth to arrive on time.

    I could be a multi-millionaire and parade my wealth for all to see and some people would be foolish enough to believe I was rich IF I borrowed 10 million quid. I cannot afford to repay 10 million plus interest, so I shall not even begin that pretence, but that is what labour did at the end of their 13 years.

    They borrowed an economic recovery and stuck us with the bill!

  80. 80
    Peter Manglebum says:

    you feel warm inside because Brown has ejaculated into your jacko.

  81. 81
    Sally Bercow says:

    I would love a threeway!! anyone????

  82. 82
    Mr Ned says:

    Both these factors will feed into growth.


  83. 83
    Apocolypse now says:

    Dissenters economics are the economics that got us in this mess in the first place. Sad thing is they still can’t see it. Sad very sad

  84. 84
    Mr Ned says:

    But growth based almost entirely on credit is NOT healthy growth and it utterly unsustainable. We need to get money into this country from overseas.

  85. 85
    A Firm Pair Of Breasts says:

    I don’t know about double dips but I do know I have a big pair of double peaks.

  86. 86
    David Bouvier says:

    Agreed that things take time – which is why of course Labour would have accepted full responsibility for it if the figure had been lower than expected.

  87. 87
    Budgie says:

    Mr Ned … you are right that the ‘growth’ we have got is due to the £200bn QE money printing. It was a dishonest policy and the ‘growth’ is therefore illusory. Worse, it has hidden the true damage to our economy.

    Brown could have started the rebuilding two years ago, but it would have meant admitting his culpability. It would have been painful, but at least we would have less debt, lower interest payments and a genuine recovery.

    Now we are two years late, and the Condems are hobbling themselves and us because they won’t do sensible things like: build more nuclear power stations; sell the BBC; leave the EU; close DfID, etc.

  88. 88
    Mr Ned says:

    Labour’s method of paying back a credit card. Use another credit card!

  89. 89
    streamfisher says:

    Finland’s economic output has slumped recently, its two biggest exports are Nokia phones and paper (bureaucracy and bank notes), a double dip whammy for them since Gordon left office, but wait till he publishes his book, that will get the printing presses fizzing! again for sure.

  90. 90

    Thanks for that Peter, i did wonder….

  91. 91
    Dissenter says:

    Apocalypse – what created this growth? Govt spending or Govt cuts?

  92. 92
    Braveheart says:

    “Good news for the economy but terrible news for the agreed Balls-Byrne line that public sector cuts “risk a double dip recession”. ”

    Contrary. The Osborne cuts do risk a double dip. They will certainly (according to the OBR and others) lead to slower growth this year and next than previously foreacast.

    The 2nd quarter growth figures (if true) make the severity of Osborne’s cuts even less necessary, and their continued pursuit perverse.

    Just a thought: what are all you guys going to say when Georgey boy reverses his cuts policy…?

  93. 93
    Mr Ned says:


    Spot on! I still think the coalition is far better than the previous labour government, but they are still nowhere near good enough as they refuse to do what is badly needed to protect our nation and our economy. Getting out of the EU should be a first option, privatising the BBC would be a good move too.

    The coalition are bad, but not catastrophically so, like labour were.

  94. 94
    streamfisher says:

    3.) Tell everybody the end of the World is nye

  95. 95
    Number 10's cat says:

    Much as it galls me to say it, Alistair Darling is one of the few members of the previous administration to have survived with any semblance of honour or integrity left. God alone knows where we would be, had he acquiesced to Brown’s demands.

  96. 96
    Mr Ned says:

    You raise a valid point there David. If today’s figure had shown a double-dip already, then labour would definitely be blaming the tories for these figures.

    We will see both sides claiming today’s figures as a vindication of their own policies.

    When in fact they are labour and the BoE’s figures and are nothing to be proud of for they are representative of a mirage, a scam and a con.

  97. 97
    streamfisher says:

    Or nigh even.

  98. 98
    Can't remember my moniker says:

    Similar thing here across the Adriatic where the old communist influence still affects the beaurocracy, but real life is somewhat different. Three wise monkeys.

  99. 99
    Braveheart says:

    “Good news for the economy …… ”

    And good news for Alasdair Darling and Gordon Brown, whose strategy has pulled the country out of an unprecedented recession in such spectacular fashion….

  100. 100
    Eileen Critchley says:

    I believe that the private sector is unlikely to create the number of new jobs needed to offset the inevitable public sector cull. Lets review the figures in Q1 and 2 next year.

    If anything, many private sector organisations remain over-staffed.

    There are just too many people in our economy who have an input but create little if any measurable output.

  101. 101
    chris says:

    The s**t has not hit the fan yet the cuts have not had time to bite, there is a lot of unhappy people in the UK and they are not all labour MP’s let us wait and see before we begin to congratulate the Coalition. They are not performing at their best within 2 days both David and Nick (Clegg not Griffin) have managed to dismiss WWII and the Iraq war lets see what happens next!!!!

  102. 102
    Ranting Nat says:

    Lets face it the whole world is fucked! Why? Because the vast majority of the ruling politicians are fucking amateurs with no deep understanding of anything. They recruit sycophants who tell them anything to gain favour and either monetary or political advantage, who don’t give a shit as they will not be accountable if the shit hits the fan. The leaders are non-accountable for their poor decisions, they cannot be prosecuted for fraud or gross incompetence. At the end of all this, hard working Joe Public has to foot the bill and swallow the reduction of living standards brought about by these incompetent politicians!! One good step in the right direction is to look seriously at the banking industry and all these bonuses that are being paid out of taxpayers funding and customers being ripped off. Fuck ‘em all!!

  103. 103
    Can't remember my moniker says:

    Reformulated from earlier this morning:

    What is politics, if not getting disparately inclined groups to imagine that they agree with each other, which act is only feasible because the factions choose their own interpretation of the language employed?

  104. 104
    hypocrites says:

    these WERE the same type of GDP projections that everyone rubbished under Labour just before they were downgraded

    magically under Dave they are now rock solid and utterly trustworthy

  105. 105
    ripple says:

    ..100% correct of course.
    But the electorate are too thick to realise that….

  106. 106
    all politics is local says:

    the economy doing better means savage cuts have less justification
    to the consternation of the Liberals unhappy with the severity of them

  107. 107
    try again says:

    the Liberals and the Conservatives both agreed with QE as a policy

  108. 108
    you win it you own it says:

    hows Obama doing blaming Bush these day?
    as badly as the US economy and his poll numbers
    US unemployment is huge and he is getting the blame for it not Bush

  109. 109
    Adios nulab. says:

    What about people in Wood green saying they live in Crouch End? I myself live in America east.

  110. 110
    Anonymous says:

    All western countries appear to be in the process of being run into the ground to serve the greedy selfish interests of political and mercantile elites.

  111. 111
    Cato Street Conspirator says:

    Brown will get one sentence in the history books: ‘After years of waiting, Brown became prime minister in 2007, going on to lose the May 2010 general election.’

  112. 112
    Braveheart says:

    Shadow chancellor Alistair Darling said this morning: “The figures vindicate my approach, they’re the final nail in the coffin of the argument that things were worse than the new government thought”.

    Well put, Alistair, it was always an Osborne lie….

  113. 113
    Budgie says:

    Dissenter … it is not real growth, it is an illusion created by borrowed money and QE printed money.

    If your income is £21k and you borrow £7k, that does not mean your income has grown to £28k. Sheesh, as Apocalypse says “Dissenters economics are the economics that got us in this mess in the first place.”

  114. 114
    Cato Street Conspirator says:

    Tory-Lib way of growing the economy: slash it.

  115. 115
    Cato Street Conspirator says:

    Who is Osborne’s dealer and is the stuff on expenses?

  116. 116
    Lil Olmey says:

    No, the figures are attributable to the increased confidence with Zanu’s widely anticipated demise.

  117. 117
    Cato Street Conspirator says:

    What do you suggest we do about it – sack everyone so no-one has the money to buy anything?

  118. 118
    Cato Street Conspirator says:

    What’s happened to the LibDems is what happens when you take what looks like a good job, find you’re working with a crowd of shysters and cowboys but can’t leave because you’ve taken out a large mortgage on the strength of your massive salary.

  119. 119
    Dissenter says:

    About as wrong as you could be, anyone who does not blow bubbles up Daves arse is now a troll eh?

  120. 120
    streamfisher says:

    The money tree is a figment of the imagination.

  121. 121
    Mr Ned says:

    True he only walked around on the edge of the shit, whereas brown was making a beeline for the centre of it.

  122. 122
    Dissenter says:

    Oh its not real growth, so er how does it help Dave and knack Labour then exactly?

  123. 123
    Budgie says:

    October 2009: “David Cameron was condemned last night for saying the policy of printing money will trigger inflation and would be stopped if the Tories win the general election.”

    Also you may not have noticed that most comments on here are not supporting the Condems anyway. I want much more cut from government spending: leave the EU; sell the BBC; scrap DfID; scrap all Quangos; roll NICs into IT; combine 50 benefits into 1 a la TPA etc. This has considerable support on here and is not even Tory policy.

  124. 124
    streamfisher says:

    ” taken out a large mortgage on the strength of your massive salary” now why does that phrase remind me of Tony and Gordon, The Boom Years?

  125. 125
    Borg Drone Won says:

    Brown had no trouble taking credit for growth which occured due to the conservative government.

  126. 126
    Bonar Law says:

    Would that mean we would be off the hook for the £7 billion subvention we give to the Ireland that does not work but is part of the UK?

  127. 127
    Mr Ned says:

    Slashing spending is not being done to make the economy grow. It is being done to take the steel boot off the throat of the economy to allow the economy to catch it’s breath.

    The policies on exports and investment in business in recruitment are what should promote growth. As in REAL growth. Increased state spending based on unaffordable borrowing is NOT real growth as it is unsustainable and the costs are borne by the taxpayer further down the line, strangling the economy (as has been happening).

    The coalition are RIGHT to slash spending, I wish that they were withdrawing from the EU so we would not have to waste money on that! I wish that they were privatising the BBC, so that we would no longer be forced by statute to pay for them to continuously lie to us.

    If you believe that slashing spending is meant to make the economy grow, then you are an idiot. It is NOT to make the economy grow, but it is to stop the economy from dying off completely!

    The economy needs the steel boot taking off its throat and a blood transfusion in the form of massive inward investment and new money brought into this country via export growth.

  128. 128
    Budgie says:

    Yup, Labour initiatives are like used confetti: gone in a moment, not worth the paper they are printed on and doomed to the gutter.

  129. 129
    Budgie says:

    A ‘recovery’ of 1.1% of GDP (equal to about £16 bn) after spending £200 bn of QE printed money and £155 bn of borrowed money? Get a grip.

  130. 130
    Mr Ned says:

    No Alistair it shows that you borrowed a false economic recovery that we all will be paying back for decades!

    We have to pray that the coalition can manage the economy and set the legal and regulatory framework in such a way as to encourage this mirage turn into a real economic recovery.

    If labour had won the election, then the economy would have fallen off a cliff later this year!

  131. 131
    Hard-Lazing Voter says:

    lol @ the mongs crediting this to stimulus. News flash: STIMULUS DOESN’T WORK. It didn’t work in Britain, it didn’t work in France, it didn’t work in Germany, it didn’t work in Greece, it didn’t work in Spain, it didn’t work in Australia, it didn’t work in Japan and it won’t work anywhere.

    Paul Krugman should be forced to apologise then be given a noose.

  132. 132
    Budgie says:

    Hello Gordon, you can’t disguise yourself on here. So “a greater proportion of the deficit will disappear due to economic growth and increased tax returns.” will it? Last year we borrowed £155bn. Annual ‘growth’ of 1.1% of GDP is about £16bn. Even you can’t make those figures add up.

  133. 133
    Mr Ned says:

    Dissenter, I never said it did “help Dave and knack Labour then exactly?” That is Guido’s illusion, not mine,

    Dave cannot sensibly take credit for these figures. Anyone with a clue knows that these have nothing to do with the coalition. The coalition have barely broken bread on the economy at all yet.

    Labour cannot sensibly claim that these figures are a sign of economic competence on their part either.

    It would be like me inheriting the bank account of an incompetent uncle who had borrowed a shit load of money. He might look rich, but it all has to be paid back with interest. How I would manage that account would then determine if I would stay “looking” rich in appearance only, Whilst going completely broke) or if I could turn that inheritance into something sustainable.

    The only upside in these GDP figures for the coalition is that they can hopefully use these figures as a springboard to create a real and lasting and sustainable recovery, because labour most certainly would not have.

  134. 134
    Budgie says:

    Borrowed money is not wealth, as you say. We need to start earning our living again, not borrowing it.

  135. 135
    Budgie says:

    If (a big if) ‘public’ spending was driving the economy it was doing so on the back of £155bn borrowed money and £200bn QE printed money. Money that will have to be paid back. What we owe far outweighs the feeble ‘recovery’.

  136. 136
    Mr Ned says:

    Indeed, Brown did so at every wealth destroying budget and every spending revue for 10 years by claiming credit for “x number of consecutive quarters of growth” which started in 1993.

    Brown took credit for the conservative 1993, 1994, 1995, 1996 and 1997 growth figures which were built on productivity, record export growth, record inward investment, industrial flexibility in the marketplace and hard work. Most of which labour opposed.

    Dave taking false credit for ONE quarter’s economic growth (when he was in power for a part of that quarter) does not even begin to compare with the blatant and fraudulent claims by Gordon Brown in taking credit for the SIXTEEN quarters of growth that happened before labour came to power!

  137. 137
    The egnigma of buying tat. says:

    Mwahahahaa. Labour and their Voodoo economics Double dim!

  138. 138
    streamfisher says:

    Think every bodies getting a bit ahead of themselves on these preliminary un-revised figures for a very short space of time, going on past pronouncements under Labour a lot people got the feeling the relevant departments had been leaned on to come up with something which looked positive and then subsequently the + growth figures always marked down, maybe moved on from an uneducated political spin guess to an educated guess.

  139. 139
    Budgie says:

    It could be affected by an overwhelming sense of relief that the UK economy is no longer being run by the most catastrophic Chancellor and PM we have had in the last 100 years. But recovery will not be here until we actually start paying back our debt.

  140. 140
    Mr Ned says:

    “If your income is £21k and you borrow £7k, that does not mean your income has grown to £28k. “

    Very true. One of the reasons that the downturn was soo deep and fast is because far too many people DID think that borrowing money increased their income.

    A sizable part of the economic growth in the noughties was based on people spending ALL of their income PLUS the equity in rising property prises. They literally considered that the equity was income and that it would last.

    One of my work colleagues re-mortgaged his home 6 times over three years up until August 2007.

    Now when the crunch came (as was inevitable) it meant that a lot of people suddenly saw their income collapse as the equity was no longer available. this impacted heavily on spending levels and was part of the driver of the recession and the lowered levels of spending have continued to this day and will continue for many years.

    Millions of people have woken up to this simple economic fact, that income plus borrowed money does not equal a bigger income.

    Shame that the labour party and many of their supporters have still yet to learn that simple fact.

    Labour are the party that would attempt to pay off their credit card with their credit card.

  141. 141
    Anonymous says:

    Guido, I respect you as a blogger and as a libertarian (I am neither) but this post is one of the most ridiculous you have ever made – I guess you’re just whipping up a Friday afternoon frenzy among your punters??

  142. 142
    Blue Labour says:

    Dave is the heir to Blair after all

  143. 143
    Rip Van Winkle says:

    So what do you suggest? The Government keeps borrowing and printing to ensure they can afford plastic tat and overpriced housing currently in vogue? And what is the point of us buying masses of Chinese cr*p? What does it actually do for us?

    Unless people are told the truth – we’re f**ked unless we pull ourselves up by our bootstraps – the sheep go on their merry way. The Big Lie continues. And will end in certain disaster for UK plc.

  144. 144
    D-Anne Abbbbottt says:

    Here me now, I iz in innit blood. Can I being summa momma’s jerk chicken? Ya man!

  145. 145
    Socialism has murdered 150 million human beings pride says:

    No, Kato Street moron, lets print and borrow billions more and then we can all be rich and not have to work at all.

  146. 146
    john from hull says:

    Hooray the rascist is back

  147. 147

    + + + UK GDP Increased 1.1% in Q2 + + + – Guy Fawkes' blog…

    I found your entry interesting do I’ve added a Trackback to it on my weblog :)…

  148. 148
    hmhmhh says:

    Come on G, by the end of June (2nd semester) Cameron had not yet decided whose job it was to change Cable and Clegg’s nappies. Soaring unempolyment and growth is an unlikely combination, like a 69 but facing away.

  149. 149
    Lord Haw Haw says:

    Not sure that 1.1% GCP growth is a reasonable return from £200bns of quantitative easing.

    And it wont be of much solace to people who have seen their income from savings wiped out by the ZIRP.

  150. 150
    HappyUK says:

    F*** me, we knew Gordon Brown was a miserable, irascible, scrotum-faced old Scottish c*** who can barely put his tie on the right way round…

    But if more public spending is an example of the Balls-Byrne line in fiscal prudence then excuse me while I sew my savings into a f***ing mattress and leave it out in the middle of the street!

    You don’t cut our national debt (yeah, that one sitting at around 62% of GDP, not including pension and healthcare obligations sitting ‘off balance sheet’) by spending:

    – £280,000 on a conference addressed by Blair and Brown on value for money in the public services

    – £400 million on ‘cost control’ for the Olympic Games

    – £3 million by tax inspectors at HM Revenue and Customs on flights, including £2.1 million on flights to Scotland

    – Over £16 million on the creation and upkeep of VIP lounges in Heathrow and Gatwick despite the fact they are not government-owned

    – £100,000 on assessing whether £400,000 reportedly spent on modern art for seven hospitals was money well spent…

    … you stupid pair of myopic f***ing cockends, any more than amputating your f***ing left leg is a sensible way of losing weight!

  151. 151
    Anonymous says:

    “Not sure that 1.1% GCP growth is a reasonable return from £200bns of quantitative easing.”

    i dunno; I reckon it’s better than the 0.1% growth that labour managed to get from about £4trillion of accumulated debt.

  152. 152
    Peter Grimes says:

    Then you are most certainly not Ms Jacquie-FiveBellies-Timney then!

  153. 153
    Peter Grimes says:

    Reacting to market forces, perhaps?

  154. 154
    Audemus Dicere says:

    What’s with this “Brigada Rossa” moniker? “Brigada” is not an Italian word and the organisation that I think you are trying to refer to is always referred to in the plural.

    Did you mean to call yourself “Brigate Rosse” by some chance?

  155. 155
    Up sh1t creek says:

    The Sky business presenter almost climaxes with the news of the fiddled GDP figures. Just don’t EVER ask how much of it is real growth, compared to government spending (borrowed more money). It’s all a fraud to hide how bad the economy is really doing.

  156. 156
    Up sh1t creek says:

    The GDP figures are thanks to Labour policies. Well, at least Alistair Darling got something right. The ONS have been massively cooking the last three quarters GDP figures, including for the first time “government spending”. Strip this government spending (borrowing) out of the figures, and the UK is firmly in recession.

    So yes, these figures are all down to Labour policies, with the Labour supporting ONS and Bank of England feeding falsified data to the masses and the markets.

    Fraud charges need to be brought now on these people.

  157. 157
    Up sh1t creek says:

    If you believe those GDP figures, I think Gordon Brown can recommend you a funny farm to visit, along with some happy pills.

  158. 158
    Hard-Lazing Voter says:

    Captain Darling: “GDP growth vindicates Labour”

    Oh yeah, let’s explode the national debt on something that only works almost two years after it was enacted.

    Fuckwit Keynesians think we were all born yesterday.

  159. 159
    Hard-Lazing Voter says:



  160. 160
    We can go shopping again bye bye reds says:

    Maybe shoppers were voting with their feet and wallets previously because someone denied them the chance to vote for real in ’07.

  161. 161
    Anonymous says:

    “This will cause anguish in Labour circles (whatever they say publicly) because if the Coalition gets the economy to bounce and grow strongly by 2014, Labour faces becoming the third party. Labour needs bad news to thrive electorally…”

    Especially considering that all three parties are essentially at the same point on the left-right spectrum now. The only differences are in competence (ergo, the coalition is vastly more competent). In times of austerity, a population shifts to the right, in times of prosperity, to the left. When there’s nowhere to go….

    The Republican party in the USA finds itself in much the same position, though to a much greater degree. Said party is doing absolutely everything it can to ensure the USA’s economy and social situation collapse hard, as that would make the Democratic party seem incompetent and thus give the Republicans a fighting chance in the 2012 elections.

  162. 162
    North, but not Scotland says:

    Don’t worry SF, it was Sue’s fault.

  163. 163
    North, but not Scotland says:

    Yeah, yeah, and if the figures had shown a reduction in growth, the Badger would have said “we predicted the cuts would result in a double-dip recession”. Darling talks like a goose shites, any way the wind blows.

    I predict Darling will say:

    If the economy recovers, it’s because of the Labour borrowing.

    If the economy crashes, it’s because of Condem cuts.

    So really, he should STFU.

  164. 164
    Jethro says:

    …”ture”… yes, in a Yeats kind of way..

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Alan Milburn says Labour’s scaremongering campaign for an unreformed NHS will not win election…

“It would be a fatal mistake, in my view, for Labour to go into this election looking as though it is the party that would better resource the National Health Service but not necessarily put its foot to the floor when it comes to reforming. Look, reforms are not easy, but the Labour Party is not a conservative party. It should be about moving things forward not preserving them in aspic. You have got a pale imitation actually of the 1992 general election campaign, and maybe it will have the same outcome. I don’t know.”

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