By Max Clarke
The Office for National Statistics this morning confirmed that UK’s economy has flatlined over the past 6 months, allaying speculations that the GDP figure released last month was too low.
Further confirmation of the nation’s economic woes came as figures published by Paris-based economic body, the OECD, suggested that unemployment would continue to rise as the UK slips into a prolonged period of stagflation.
Unions, long opposed to the Coalition Government’s cuts programme, have interpreted the grim economic indices as proof of the damaging effects that austerity measures have on the economy.
"The government's economic credibility is in tatters but sadly it's working people who are paying the price,” commented Len McCluskey, general secretary of the unite union.
“George Osborne,” continued McCluskey, “has staked his reputation on cutting the deficit, but Tory-led economic policies are in such disarray he has actually managed to deliver a record increase in borrowing. The chancellor also claimed his policies would boost the private sector, but growth is flat and business investment has fallen seven per-cent. George Osborne - and the coalition government - is failing miserably on every count.
Despite the negative figures it published, the OECD has lauded Chancellor Osborn, encouraging him to stay on track in the face of increasing opposition, and recommending further cuts.
"Amazingly, the OECD is predicting a sluggish UK economy but is recommending more of the same measures from the government which is failing Britain and the rest of Europe. It is time to think differently and act differently. Just because it hurts does not mean it will work," said an incredulous McCluskey.
"The coalition has now been in power for one year and Britain's economy is in a worse state now than it was when they entered government and there are no signs of improvement. It is time for the coalition government and deficit hawks in the CBI and IoD to look at alternatives which boost the economy rather than leave Britain injured on the sidelines.