Where is the Government's Growth Strategy?

Where is the Government's Growth Strategy?

The publication today of the national growth figures which showed that Britain's economy shrank by 0.5% in the last quarter makes it very clear that the Government does not have a growth strategy for the economy. The Conservatives, have been arguing for many years now that the British Government is too big, and should be reduced. Since becoming the senior party in the coalition government, they have implemented, with the support of the LibDems, major spending cuts in (almost) all areas of government expenditure.

The Coalition Government was formed as Britain was emerging from a major recession. Government income from private and corporation taxes had fallen significantly and expenditure had increased to support the banks, and the economy.

So when the Coalition Government took over, their priority was to reduce government expenditure. Everyone, including the Government acknowledged that this would slow the economy down, and therefore a growth strategy was needed.

Hence the question: Where is the Government's Growth Strategy?

The reality is that the Government has not announced a comprehensive growth strategy for Britain. The PM, Business Secretary, Foreign Secretary and a few assorted ministers  have made some speeches about re-balancing the economy and they have been on some international trips to boost Britain's international trade. At home however, every initiative of the previous government to boost growth has been scrapped without a practical and effective replacement. The Government argues that the cancelled programmes were ineffective and wasteful, but given the absolute importance of growing the British economy, there have not proposed any replacement schemes.

This is irresponsible behaviour by the current Government and we are seeing the results in the weakening economy, growing unemployment, increased nervousness by both business and individuals with the poorest in society suffering the most.

According to the outgoing head of the CBI:

"It's failed to articulate in big picture terms its vision of what the UK economy might become under its stewardship," 

The government has "taken a series of policy initiatives for political reasons, apparently careless of the damage they might do to business and to job creation"

"...to bring the public finances back to full health, they will have to be accompanied by increased output and employment - which bring with them higher tax revenues," he stressed.

"Public spending cuts and private sector growth are two sides of the same coin."

It is clear that the cuts to public spending are idealogical in nature, and are not based on practical economics. Instead the Government is using the "state of the economy" as the excuse rather than the reason. It is clear that the Government's overall economic strategy is not appropriate to Britain today and the fact that the members of the Government do not see this says a lot about the people who make up the Government.