News

Steve Reacts to Double Dip Recession

(April 26, 2012)

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Liverpool Walton MP, Steve Rotheram, has responded to the news that Britain has slipped back into recession.

Steve explained, “David Cameron and George Osborne complacently boasted that their austerity plan had taken our economy out of the danger zone, but their failed policies have plunged us back into recession.


“The Labour Party have consistently warned that Osborne’s austerity plan was self-defeating and that cutting spending and raising taxes too far and too fast would ultimately backfire. Well yesterday, we were unfortunately proved right.

 
“The reason why last month’s Budget is such a disaster for Walton is not just because it unfairly cut taxes for millionaires while clobbering families and pensioners but it also failed to come up with the plan for jobs and growth Britain desperately needs and we have been urging.

“Not only has our economy shrunk in the last two quarters which means we are in recession - but our economy has actually shrunk in the year and a half since George Osborne’s spending review.


“And far from the Eurozone being to blame for Britain’s woes, it was only growth in the EU and the rest of the world which kept us from going into recession earlier. The reality is that when you exclude exports, the domestic UK economy has now been in recession for well over a year.

“In Liverpool Walton, we have 5,359 people on the benefits bill rather than in work and this is largely due to the fact that the government is not creating climates that are conducive to jobs and growth. I said last year that the regeneration strategies that this Government have are in no way strategic. They do not inspire confidence in businesses and the bottom line is if people don’t have money in their pockets, then they have no money to spend in shops. 

“This is extremely frustrating when we consider that we have thousands of people who want to work and who can’t work but who are being denied the chance to work. It’s frustrating that we haven’t been able to secure the private sector investment that we need to create new jobs in our city because I know that there is a brilliant entrepreneurial spirit and business acumen in Liverpool. This was demonstrated at the GEC in March, held in the heart of Liverpool. Untapped potential that can help our town recover from this recession.


“The economic price of this recession is billions more borrowing to pay for the Tories economic failure. The political cost of a double-dip recession is that the Tories economic credibility has now been shot to pieces but more gut wrenching than all of that, is the human cost of recession. Families in Walton have already had a tough two years and unless George Osborne changes course now, it looks like the next two years won’t get any easier.”

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