UK economy shrinks by 0.5%

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George Osborne MP, pictured speaking on the la...Image via Wikipedia

The Office of National Statistics has announced that in the last three months of 2010 the UK economy contracted by 0.5%.  In the two quarters prior to that, there had been growth of 0.7% and 1.1% respectively.

The figures will make uncomfortable reading for Chancellor George Osborne and the Coalition government, despite the fact that many of the cuts that Labour would be looking to blame have not come in yet. Even though it was expected there would be a drop in activity due to the heavy snow around much of the country, growth was still predicted to be at between 0.2% and 6%.

Richard Lambert, British economist and Directo...Image via Wikipedia

The figures will make outgoing CBI  Director-General Sir Richard Lambert’s comments yesterday that the Government doesn’t have a plan for growth sting just a little more.

VN is placing bets on how long it is going to take Ed Balls to go native, and to bring out his ‘Keynes said dig holes” line.

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