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Double blow to Brown on jobs and the economy
Joe Murphy, Hugo Duncan and Nicholas Cecil30 Jun 2009
Gordon Brown's election fightback was undermined today by new figures on the economy and jobs.
Official statistics revealed that the recession is deeper and longer than previously believed, raising questions about whether Mr Brown can avoid public spending cuts.
The UK economy shrank by 2.4 per cent in the first three months of this year, the fastest slide for 50 years.
Moreover, the recession started three months earlier than previously thought. It began with a 0.1 per cent decline in April, May and June last year, a period when it was previously thought to be at a standstill, according to the Office of National Statistics.
Tories pounced on the information, saying that it would raise the costs of the recession, and challenged Mr Brown to admit that either cutbacks or tax rises lay ahead.
At the same time, it was revealed that job centres have massively raised their estimate of the number of people who will become unemployed.
In January they were estimating that two million people would be claiming jobseeker's allowance by 2010-11. But by April their projection had risen to 2.86 million.
In another setback, the Prime Minister's promise of “British jobs for British workers” was undermined by a report from the respected Organisation for Economic Co-operation and Development that said three in every four jobs created in the boom decade before the slump went to a person born abroad. Some 1.5 million extra jobs were filled by migrants.
The setbacks came after the Prime Minister put new jobs and a promise to invest more money in the economy at the heart of his mini-manifesto, Building Britain's Future.
Shadow chancellor George Osborne said: “Sadly we now know this recession has been longer and deeper than we had thought.
“This also means that in the future unemployment will be higher and Labour's debt crisis will be even worse.”
In fact the first-quarter fall was the fastest since 1958 and suggests the 2009 decline will be much worse than the Treasury forecast of 3.5 per cent.
Ross Walker, an economist at Royal Bank of Scotland, said it all pointed to a “lacklustre” pace of recovery.
The Conservatives stepped up criticism of Mr Brown's mini-manifesto.
Shadow immigration minister Damian Green said the number of jobs going to migrants raised questions over how many Britons would benefit. “This government has created British jobs for foreign workers.”
Reader views (20)
It was always going to be the third term of this government when the chickens came home to roost, and, unsurprisingly, Blair, Brown and the rest of dream team have made a much bigger mess of things than anyone could ever have imagined.
To make matters worse the incompetent Gordon is forcing us to wait until next year to banish them to the wilderness for another generation.
- Xtremely Worried, Unknown, 01/07/2009 08:02
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No need for irony Keith Price!
- Amoreno, luxembourg, 01/07/2009 07:48
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So Northern Rock coming back on the market, a government attempt to balance the books before an election. Sell, sell, sell er and 10 Downing Street, that would help. Problem might be the HIP and all that isn't declared, rats, neighbour disputes, death watch beetle, rising damp, dry rot but still a bargain. Suppose he might do better price wise with the contents. Offers by post with a stamp please.
- Tony Islander, Herts, 30/06/2009 23:41
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I would now rather have a benevolent dictator than this broken democracy. Brown will not go so it is time the armed forces took over the country and gave us some leadership (while they are at it execute the labour party). I always smirked at third world countries political turmoil, but I now understand.
- Bob H, Streatham, 30/06/2009 22:48
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Keith Price, Luton, England - take another pill please. You are ranting incoherently again.
- Dave Davies, Basingstoke, Hants, 30/06/2009 22:16
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Gormless Brown "a man of substance"?
My African grey parrot has a better vocabulary than the entire Labour Party.
At least there is no spin and waffle from the parrot.
The parrot knows - and you know - that what he says is what he means. No deviation. No lies. Not like MP's.
I share with you one of the parrot's finest:
"GORMLESS BROWN IS AN IDIOT".
Say it again:
"GORMLESS BROWN IS AN IDIOT".
Exactly.
- Reuben Camara, Republic of Morecambe, UK, 30/06/2009 22:07
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I am lucky if I get three days work a week (agency). I used to do six before the working time directive. I received this very day notice of a pay cut, and still the foreign workers pour in.
Tell me again that the Labour Party is the party for the working man.
- Sceptic3, Guildford UK, 30/06/2009 21:48
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Aha--yesterdays so called policy hog wash announcments were an attempt to bury more bad news.
But none of us were deceived were we?
- William Grierson, Kimpton-UK, 30/06/2009 18:01
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Oh Dear! Why dose not the Prime Minister call it a day and call for a general election instead of keeping the nation or country in misery? The sooner the better for everyone!
- Arthur Lincoln, Roeselare, Belgium, 30/06/2009 17:26
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oops, sorry i must have dozed off, or blinked.
did somebody say brown had a stratergy ?
- M.O'Brien, ;london.uk, 30/06/2009 16:57
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Brown keeps power by his McBride fear effect. He has abused power immorally with social slogans, like 1984, Animal Farm and USSR, tricking people. Labour are in government meltdown, unfit for any purpose save one more year's pay. They are bankrupt morally, socially, financially and in management.
Government is acting like a criminal. It hides incriminating facts like MP's details on expenses. While the Daily Telegraph does the government role of putting facts in the open, assessing right and wrong and directing the way forward. Brown and Labour undermine law and order by promoting alternative law systems such as 85 sharia courts. This is an unfair, easily corrupted system built on discrimination of women and others. Labour encourages social division with no control of borders, so now over 300 internal terrorist plots. Labour hides financial data as the Treasury conceals off-balance sheet debt, and denies information access.
The UK had a safe banking system for 400 years. Brown put in his Light Regulation and in 5 years a bank run, banking chaos, and finacial disaster. Brown has used spin and lies to pretend he can keep spending, as if money comes out of air. He lies about how it will be paid back. Other countries like Canada are fine. No Brown boom, as he changed the inflation measure to exclude housing, so interest rates were too low, and prices boomed, then crashed. Brown is the worst Chancellor and PM in history. Hopefully Labour will be gone for good.
- Moham, Bradford UK, 30/06/2009 16:56
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Well done PM for starting to get thr UK out of this worldwide recession.
- Keith Price, Luton, England, 30/06/2009 16:53
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I thought his big idea was simply to lie to us again. So this won't affect his core voters because they still believe every word he says. Meanwhile the non brain dead see right through him. He's toast and he knows it. Thats why he's running the country into the ground just as fast as he can. We all may have to go stay with Mijas Val when the UK is eventually repossesed by the new owners.
- Ethan, UK, 30/06/2009 16:45
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Gordon Brown is the Man with the Reverse Midas Touch for he has the knack of turning gold into base metals.
- Jonah U, London, 30/06/2009 16:37
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The country is broke. Thanks Gordon, the government and Parliament. 646 people have the power to bring 60 million plus to their knees.
Time for a big change...
- Man In The Street, London, UK, 30/06/2009 15:44
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This is where I suggest Brown concentrates his mind, instead of trotting out useless 'initiatives' such as local homes plans and stopping dole for workshy under 25 year olds. His next strategy should be to call a General Election.
- Sonia M., St Albans, Herts, 30/06/2009 15:27
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Another landmark for the leadership of Gordon Brown. Well done.
- Dave Davies, Basingstoke, Hants, 30/06/2009 14:46
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GORDON'S ECONOMIC MODEL IS BASED ON HOUSE PRICES (AND THERE'RE UP AGAIN) SO DON'T WORRY ABOUT ALL THIS STUFF GUYS
- Peter, Moscow RF, 30/06/2009 13:38
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brown built the economy on consumer credit and de regulating the banking system, now credit has dried up and the system has collapsed we can the the result of his massive intellect - as the politburo are routinely instructed to tell us .. . truly a man of substance and well thought out policy ..
- Kevin, london, 30/06/2009 13:35
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Nice to see Labours' policies working.
- Roger, Winchester, England, 30/06/2009 13:07
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