A double boost for the coalition's economic strategy

normanc

Imagine the position we'd be in if they abolished the 50% tax rate, reversed the CGT tax rise and had second thoughts about the VAT tax rise. Coupled with the corporation tax cuts I could just about get behind that.

GDT

It is strange really.
The left are stood on the side-lines praying that the world falls down around us. That we fall into a double-dip recession.
They pray that the poor will be poorer. They hope all those who loose their jobs in the public sector will not find jobs in the private sector.
All for their own ends, as a means of being re-elected in 4 years time or perhaps sooner.
Sad really.

Senor Frizby

Labour represents those that think the state should supply endless jobs for just about anything except that which constitutes real work. Thus the cuts in public sector jobs represents an uncomfortable test for those used to cushy hours, plentiful sick days, absences and perks. All of these are fools gold in the real world where work and achievement contributes positively to society.

Labour can only hope that the economy fails so that they can do a Gordon all over again. Sadly for them, it seems they'll have to wait!

lloydj

Immediately after reporting the good growth figures, the BBC moved to an outside broadcast at a factory site in the NE. Anticipating an embarrassing bad news story for the government the subsequent interviews ignored the facts and concentrated on the continuing difficulties and how the cuts were affecting the NE economy.
Another own goal for the 'neutral' BBC. When will they learn?

justathought

Krugman as an economist has the advantage of neither having to run a business nor stand for election. Where were all the economists when the housing bubble in the US was happening?

Todays news reveals that the boss of PIMCO ( $1.3 trillion under management) has declared that Greece will default within 3 years. This is what happens to a country that does not succeed in addressing its debts. In reality a 50% hair cut for creditors like the UK will mean a 3% loss to businesses .

There is little mention of yesterdays commitment announced by the PM to spend £200 billion on infrastructure in the next two years, more than was spent in the previous four.

One of the mistakes of the previous administration was to create too many quangos that siphoned off the funding on overheads while delaying the construction though its bureaucracy . This red tape meant that the BSF never achieved its full potential and the same for housing around the country. That lesson has been well learnt !

Simon Stephenson

"The strength of the private sector in this quarter suggests that the coalition is right to think that the private sector can more than make up for the jobs that will be lost in the public sector over the coming months."

This is absurdly over-optimistic, surely? Certainly if world trade is healthy, and there is an upsurge in public confidence, we ought to be able to enjoy a fuller level of employment. But there are major issues of international debt and finance which need to be resolved before such a state of affairs can come into being. It's not just going to happen by itself.

Airey Belvoir

The reluctance of the BBC to see these figures as good news is obvious. Their whole narrative was based on the expectation of a double-dip, and there is some grudging back-pedalling going on.

toco

The BBC and Labour will have to convene an early meeting to discuss this excellent news for the United Kingdom but disastrous news for them.Flanders,Miliband and the Ballses are going to have to draw on their Oxford days together to come up with something to combat the optimistic outlook as portrayed by independent financial institutions.They and the BBC must be truly rattled.

ollie

**STOP PRESS**BREAKING NEWS**

**Alan Johnson, Labour's new ScotE, says we need a "steadier and surer" path to growth.**

Gee thanks Alan - your economic genius is really something to behold.

TrevorsDen

I believe the govt are going to spend just £30 billion over 4 years.

They 'hope' to 'unlock' £200 billion of public and (mostly) private investment - timescale 5 years.

Hope thats cleared up.

Pettros

Lot of BBC bashing this morn. How people expect a public sector organisation to remain impartial during the cuts I dont know. Shrinking the state will affect BBC budgets and lead to redundancies. It is little wonder that the BBC slant their opinions against the cuts - they are probably fearing for there jobs!
Will be interesting to see if DC blames the better than expected growth on Labour like he does everything else.

GDT

@ Pettros,
I expect them to be impartial exactly for the reason that they are funded by Government. They are not elected and have not been elected to speak on behalf of the UK.
If they can't be impartial then privatise them and have it over and done with.

PayDirt

What happened to those debtometers that used to merrily click forever upward telling the nation how much each man/woman/child/futurecitizen’s share of the UK debt? Or is that infra dig for today’s Coalition attempts at boosting confidence in the system? Until all those “toxic” assets that brought panic to the banks in 2007-2008 are laid to rest, we live in fear. Did not the UK Govt guarantee our banks’ losses? So have they figured out the losses yet or are they still pretending some positive valuation?

Paddy

Well it certainly knocked the smile off Johnson's face.

They were all standing by for the bad news and now quickly re-writing their speeches.

Oh dearie-dearie me.

Coeur de Lion

We simply must do something about the BBC! 'Today'this morning gave uninterrupted rein to Mandelson to re-write history. Gordon Brown will be remembered as a 'big man' who saved the world. No other contribution. 'Thank you very much'.

London Calling

Positive news at last :)…but lets not get ahead of ourselves, we are but one ripple in the Global pond. Growth is the golden key to unlocking the economic cell we currently find ourselves in and faced with this challenge of the need for growth should inspire us all to find solutions. However be warned, fragility in our economy also attracts the wrong kind of self motivated individuals and groups that damage collective progress, other than to use it for personal gain, we cannot afford to be influenced in this way. Whether it’s the Koch Brothers in the US or powerful media moguls like Rupert Murdoch, our success is dependent on keeping an uninfluenced clear head…

http://www.guardian.co.uk/commentisfree/cifamerica/2010/oct/25/tea-party-koch-brothers

Andy Carpark

Pettros, Perish the thought. Redundancies were announced at the BBC back in 2005 and 'The World at One' promptely dedicated 26 (twenty six) of its allotted 30 minutes to … redundancies at the BBC. No organisation surpasses the BBC in terms of sheer self-obsession, self-dramatisation and self-conceit and it is close to logically impossible to imagine that any organisation ever could.

Ed P

The Union's men still seem unable to understand the public vs. private issue. These economic illiterates impoverished this once great country in so many ways, that I hope they are never, ever elected again. Although real, deep cuts are needed, the coalition have at least made a promising start.

Dimoto

Actually, on World at One, Stephanie Flanders was quite positive about the outlook and tried hard to give Johnson a bit of an inquisition.
However, he has obviously been coached by Brown's tutor (a certain master Balls), and just kept repeating false tractor stats.

Here's an idea for a coffee house blog :

Compare and contrast, MSM reaction to the new Thatcher government in 1979 (after 5-6 months), with the current situation.

I have the impression that on the earlier occasion, there was also widespread hostility and incredulity.

When did the MSM start taking Thatcher seriously ?

Chris lancashire

I hold no brief for the BBC believing it to be badly managed, grossly overstaffed and profligate. However, on editorial independence I think it does OK overall. If you visit pro-Labour blogs - Alastair Campbell's being one of the most spun and biased you will find various Left wingers complaining of the BBC's pro-Coalition bias.

On that evidence I would say the BBC has it about right.

dorothy wilson

GDT: The BBC may receive its funds via the Government but the taxpayer provides them.

Paddy: Unfortunately, the smile hasn't been wiped from Johnson's face if his interview on the World at One is anything to go by.

Fatbloke on tour

JF

Interesting, very interesting growth numbers, respect to AD being the order of the day.

Bounce-back-ability really is what you need.

12.5% of growth down to the public sector.
I wonder how that compares with the monthly borrowing figures?

Sept was very poor after a slow August.

The next issue is how do these figures compare with the OBR's view of the cyclical deficit and the output gap?

The strength of the two recent quarters suggests that the cyclical deficit and the output gap have been underestimated by the OBR and all those who hide behind their figures.

If the cyclical deficit has been under-estimated then the structural deficit has been over-estimated.

And if the structural deficit has been over-estimated then Sniffy's "slash+burn'fest" has been overdone.

He is cutting more than he needs to to complete his sadistic dog boiling agenda of sorting out the structural deficit in 4 years come what may.

There you have it, Sniffy is planning tax cuts to go with his devastation of the public sector / realm.

justathought

@ TrevorsDen

I am relieved that its "just £30 billion" that the government will spend on infrastructure and that the remaining £170 billion will come from the private sector!

Nevertheless this five year budget would still represent an enormous increase over the infrastructure investment made in the previous four years.

Key to all this is cutting red tape which is costing the country £12 billion each year, dwarfing what is actually spent on infrastructure !
Alas the bonfire was not big enough for some of us.

Paddy

Chris lancashire:

Alastair Campbell's blog completely takes your breath away.

Blog there at your peril!

He has the mafiosa 'peddling' his message.

lescam

FBoT

why don't you just call yourself "Sniffy" or "Dogboiler"? You appear to be unable to post anything at all without including these two insults. FYI there are other words in the English language, apart from the above. It's getting very monotonous.

Bloody Bill Brock

@LARDY TWAT WITH A GOB
"There you have it, Sniffy is planning tax cuts to go with his devastation of the public sector / realm."
Well he needs to devastate the fucker a lot more then.

Olaf Rye

How does the public sector, which siphons money from the private sector to pay for itself, lead to growth ? Really, the economic competence of some commentators is just ridiculous. If this is the state of economic knowledge in the nation, it is no wonder we are in such a dire state.

TGF UKIP

More otherworldly London delusion, I'm afraid James. The economy is now in freefall with consumer spending, housing and construction leading the way.

2011 is going to be a good time to be the Swivel Eyed Geek.