Ed Balls speech

Ed Balls speech; After nearly three years of flatlining, the Chancellor says any growth is better than no growth at all. Of course that’s true. But slow growth is nowhere near good enough. It won’t make up the ground we have lost over the last few years as other countries have raced ahead. Nor will it get long-term unemployment down, boost living standards, recoup lost business investment or generate the tax revenues we need to get the deficit down. Our analysis shows that to get the economy back to where it was forecast to be in 2015-16, the government now needs growth of 5.3 per cent a year, 1.3 per cent a quarter, over the next two years. But over that period the OBR currently expects average growth of just 1.7 per cent a year – 0.4 per cent a quarter - which means lower living standards, less tax, less investment and many billions less deficit reduction too. I fear, too, that if the world economy were to take another turn for the worst over the next few years - a second demand shock following the global financial crisis – this time the UK will be in a very much weakened position to deal with the consequences because of the stagnation of the last three years. The IMF said last month that the UK economy continuing to bump along the bottom “could permanently damage medium-term growth prospects” – compounding mistakes, not correcting them. Because the longer it takes to get the recovery moving, investment flowing and long-term unemployment down, the greater the damage to the underlying strength of the economy. If the fiscal multipliers are indeed higher, as the IMF now believes, then a balanced plan can do now to boost growth and job creation this year, next year and the year after will have a significantly larger impact on the public finances than the OBR estimates. But unless something is done in this spending review to get our economy growing sustainably faster this year and next, and so deliver higher tax revenues a...
Ed Balls speech; After nearly three years of flatlining, the Chancellor says any growth is better than no growth at all. Of course that’s true. But slow growth is nowhere near good enough. It won’t make up the ground we have lost over the last few years as other countries have raced ahead. Nor will it get long-term unemployment down, boost living standards, recoup lost business investment or generate the tax revenues we need to get the deficit down. Our analysis shows that to get the economy back to where it was forecast to be in 2015-16, the government now needs growth of 5.3 per cent a year, 1.3 per cent a quarter, over the next two years. But over that period the OBR currently expects average growth of just 1.7 per cent a year – 0.4 per cent a quarter - which means lower living standards, less tax, less investment and many billions less deficit reduction too. I fear, too, that if the world economy were to take another turn for the worst over the next few years - a second demand shock following the global financial crisis – this time the UK will be in a very much weakened position to deal with the consequences because of the stagnation of the last three years. The IMF said last month that the UK economy continuing to bump along the bottom “could permanently damage medium-term growth prospects” – compounding mistakes, not correcting them. Because the longer it takes to get the recovery moving, investment flowing and long-term unemployment down, the greater the damage to the underlying strength of the economy. If the fiscal multipliers are indeed higher, as the IMF now believes, then a balanced plan can do now to boost growth and job creation this year, next year and the year after will have a significantly larger impact on the public finances than the OBR estimates. But unless something is done in this spending review to get our economy growing sustainably faster this year and next, and so deliver higher tax revenues a...
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Editorial #:
687328710
Collection:
ITN
Date created:
03 June, 2013
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Licence type:
Rights-ready
Release info:
Not released. More information
Clip length:
00:05:22:10
Location:
United Kingdom
Mastered to:
QuickTime 8-bit Photo-JPEG SD 720x576 25i
Originally shot on:
576 25i
Source:
ITN
Object name:
r03061304_23469.mov