Latest figures show that the British economy shrunk in the final quarter of 2010. Everyone is blaming the coalition government and the snow, but nobody is calling it a recession. It’s a progressive reduction of 0.5%.
People are simply spending less, which is no surprise as half the people are out of work and the other half cannot get a loan. OK, that was not a statistic but an opinion.
Fact: GDP contracted by 5%, representing a shrinking economy at the end of a relatively good year.
Public sector net borrowing has been reduced to £16.8 billion in December 2010.
It is not known what effect the increase is VAT will have on the first quarter of 2011.
The Treasury have said that they are disappointed. But they blame the weather.