Listening to Ed Miliband's speech today, you'd be left with the impression that the UK is suffering a huge decline
in government spending this year, and that this is to blame for most of our economic ills. The facts are a little different, as the below chart shows. The European Commission estimates that the UK is likely to have the second largest growth in government spending of any of
the EU’s 27 members this year, clocking in at a robust 1.5 per cent increase for the year.
Yet this has done nothing to help the UK’s relative growth performance. The UK is forecast to be the fifth slowest growing economy in the EU this year, ahead of only Greece, Portugal, Cyprus
and Italy. Ireland, still cutting its government spending significantly, is managing to grow more quickly as its export sector lifts them out of its slump.