A slow crawl out of recession – MoneyWeek

Whatthecommentatorssaid

Theeconomyis“clawingitswayoutofrecession”,saidMartinBeckofCapitalEconomics。

Theweightedaverageofthelatestmanufacturing,servicesandconstructionsurveyspointstoquarterlygrowthofjust0。

1%。

Theoutlookisn’tespeciallyinspiringeither。

Recentincreasesinmortgagerates,oilandpetrolpricesandutilitybillsareerodingrealincomes,militatingagainstastrongincreaseinspendingbyindebtedconsumers。

Thedeepeningrecessionintheeurozoneisn’thelpingeither。

Hencethecallsforthegovernmenttocomeupwithideasto“injectmorepepintotheBritisheconomy”,saidtheFT。

Butsofar“theradicalismofthegovernment’slanguagebeliesthemodestyofitsproposals”。

Creatingasmallbusinessbanktobypass“damagedmainstreamlenders”couldbehelpful。

Butastheplanstandsitwillbe“moreofacallcentre”forthoselookingtouseexistinggovernmentschemes,suchastheFundingforLendingprogramme。

Andif“theseschemesareinadequate”,howwillpromotingthembetterhelp?

Inanycase,manybusinessesremain“toowarytoborrow”,addedTheIndependent。

Thegovernmentwillhavetomustermorepoliticalwillthanit’sshownsofarifitistostaredownruralprotectioncampaignerswhowilltrytoblockchangestotheplanningsystem。

Itwillalsoneedfirmerresolveifit’stokickstartahousebuildingprogrammeusinggovernmentguarantees。

Allthisisjusttinkering,saidAllisterHeathinCityAM。

“Corporatist”government-centredschemesaren’tarecipeforsustainablegrowth。

Weneedafree-market,supply-siderevolution,withlowertaxesandpublicspending。

Insteadthedeficitisclimbingandredtapeincreasing。

Britainisbeingheldbackby“LiberalDemocratintransigenceandtheprimeminister’slackofvision”。

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