Global Recession: The Facts About Britain

Tories exposed

It is now clear that David Cameronís strategy is to talk down Britain and present the current financial crisis as unique to Britain.

We can expose the Tory portrayal of Britain. The factsheet below does this.

Today the major European economies published their latest figures and it is now clear that countries, such as Germany, are feeling the effects of the global recession more severely than Britain.

Despite what the Tories say, when it comes to debt we are the second-best placed in the G7 - better placed than the US, France, and Germany and second only to Canada. That is why we have been able to give the economy a shot in the arm with tax cuts for hard working families and extra support for small businesses.

What is also clear is that the answer to our problems is not to retreat into isolation, as the Tories would do, but to work together across borders to tackle the challenges we face. That is why the Prime Minister will use the G20 to seek greater co-ordination between countries as we plan for recovery (outlined below).

The plan for recovery:

This national plan for recovery and jobs will not work overnight but it will make the difference in ensuring that we come through this recession stronger and sooner.


International perspective on the global financial crisis

1) Todayís figures confirm the recession is being felt more severely in Germany and Italy:

1) Todayís figures confirm the recession is being felt more severely in Germany and Italy:

(Source: Eurostat, 13/02/09)

2) The UK has the second lowest national debt in the G7:

IMF Net Debt (% GDP)2009
Japan 97.6
Euro area57.1

(Source: IMF World Economic Outlook - October 2008)

The PBR estimates the 2009 deficit in the UK will be 8.0% of GDP.

The Congressional Budget Office estimated the US deficit will be 8.3%, a figure that will rise significantly when the recently agreed $800 billion stimulus is added).

3) Britain and every major economy in the world are taking action to boost the global economy because by working together we can increase the impact - and as President Obama has said, Ďdoing nothing is not an optioní:

Cutting VAT will save the average family £275 by the end of this year. This action, together with our other measures such as cutting basic rate income tax and increasing pensions will boost the economy so that around 100,000 jobs will be saved compared with if we had done nothing instead.

President Obama said:

"There is no doubt that the cost of this plan will be considerable. It will certainly add to the budget deficit in the short term. But equally certain are the consequences of doing too little or nothing at all, for that will lead to an even greater deficit of jobs, incomes, and confidence in our economy."
(Barack Obama, speech on the economy at George Mason University in Fairfax, 08/01/09)

"I can tell you that doing nothing is not an option."
(President Obama, Economic Recovery speech, 02/09/09)

The IMF Managing Director said:

"If there has ever been a time in modern economic history when fiscal policy and a fiscal stimulus should be used, itís now."
(Transcript of a Press Briefing by Dominique Strauss-Kahn, IMF Managing Director, 15/11/08)

When asked where fiscal stimulus was needed, he said:

"Everywhere, everywhere where it is possible."
(Dominique Strauss-Kahn, IMF Managing Director, Independent, 17/11/08)

Nicolas Sarkozy and Angela Merkel said:

"Rapid and decisive public intervention is necessary to prevent irreversible damage to our economies."
(Angela Merkel and Nicolas Sarkozy, Le Figaro, November 26 2008)

Return to Homepage

Promoted by Ken Childs on behalf of David Clelland, both of 19 Ravensworth Road, Dunston, Gateshead. NE11 9AB