Yesterday UK Chancellor George Osborne was told to consider 'Plan B'. The government's austerity measures and spending cuts had been too deep and too fast, according to a senior economist in the IMF. Whether Osborne has a 'Plan B' in mind is not known.
Today's news throws weight behind his assessment.
UK GDP fell by '0.3% in the fourth quarter, leaving year-on-year economic growth flat and fears of a looming 'triple-dip' recession', reports SkyNews. Any hopes that the government had of a speedy recovery out of recession have been dashed.
News of the GDP, gross domestic product, contraction was worse than forecast. The GDP fall was announced by the ONS. The Office for National Statistics, ONS, records and collates statistics.
The UK is now facing a triple-dip-recession. If recession strikes it will the third in four years for the UK. There are some reasons, such as North Sea oil and gas fields which have experienced disruption due to maintenance. However, figures in the previous quarter were 'bumped up' by the London 2012 Olympics.
The fact that the early part of 2012 led to unrealistic figures will not surprise many. The Queen's Diamond Jubilee and the London 2012 Olympics gave a false sense of recovery. Thursday the government defended its policies, in the face of criticism from the IMF. Now it seems that the criticism was well founded.
The Tories are hell bent on reform. Most of the reform is not planned out of a will to re-balance the economy but rather a Conservative manifesto with the usual Tory policies.
In March Osborne will deliver his next budget. If he does not heed the warnings more austerity measures will be implemented. When people tighten their belts the economy suffers.There is no doubt that the Tories have a wider agenda.
Military cuts and an increase use of reservists could be a precursor to National Service or conscription. Will the minimum wage survive another budget?
As the British economy reels from one disaster to another the Tories are concentrating on the next election. Promises such as EU referendum play to the 'masses'. As such promises are timed for after the next election, and only if the Tories win with a majority, they are little more than electioneering.
Concentrating on such issues is a diversionary tactic for the Tories. In the mean-time the economy nose dives.
GDP details here