Double-dip disappointment as UK economy remains stagnant

Plaid Cymru have responded with disappointment to figures this morning which show that the UK has suffered two consecutive quarters of negative growth, blaming the double dip recession upon the direction of the UK Con-Dem government’s economic policy and the austerity cuts that they have introduced.

UK’s first quarter GDP figures, published this morning, showed a contraction of -0.2% in the economy, following last year’s fourth quarter figures of -0.3%. This means that the UK is in a ‘double-dip’ recession, as consistently warned by Plaid since the 2010 UK General Election when the Con-Dem coalition announced their economic plans.
Plaid Cymru Treasury spokesperson, Jonathan Edwards MP, said:

“These are disastrous figures and this ‘double-dip’ recession shows the abject failure of the UK Coalition’s economic policies.

“These figures show that the UK economy remains stagnant, years after the financial crisis began.

“We are now firmly looking at an economic lost decade – with most of the cuts still to come and most of the public sector job losses yet to take place.

“Worse may still come with the Eurozone in crisis and no real sign of growth in domestic demand as families continue to tighten their belts.

“Plaid have warned since the very beginning of the financial crisis that growth was vital for the economy’s well-being, but the UK Coalition’s package of austerity cuts, job losses and tax rises for ordinary people have undermined the economy and led to the double-dip recession we are now in.
“Our policy throughout the crisis has been to invest in infrastructure projects, such as hospitals, schools, rail and roads, which would have created jobs now to boost the economy and invest in better prospects for the future.

“In recent weeks we have had the Con-Dem’s giving tax breaks to their rich friends who earn more than £3,000 a week while the economy is stagnant. The Tories are out of touch.”