Autumn Statement 2013

The Chancellor gave his mid-year summary of the UK’s position to the House yesterday. He said

Mr Speaker,

Britain’s economic plan is working.

For those of you unfamiliar with the UK economy, here are some headline charts:

UK macroeconomic situation
1UK_rGDP 2UK_rGDP_growth
4UK_unemployment 16Real_wages

I don’t know what the Chancellor’s counterfactual is but I struggle to imagine much worse than the outcome since 2007. Unsurprisingly, so did every economic forecaster for the past six years. It is debatable how much of the blame for this economic disaster rests with the Chancellor but it’s certainly not the sort of picture I’d want to claim as my legacy! Unsurprisingly, George Osborne’s political instincts have turned out to be far better than mine.

The Telegraph:

Vindication for Chancellor Osborne’s strategy

The Daily Mail:

The day that proved George Osborne austerity plan is working

3 replies
  1. MillAhab
    MillAhab says:

    The New Economics Foundation has some great analysis of the autumn statement, needless to say Osborne’s legacy doesn’t look like much to be proud of…

    • jamesz
      jamesz says:

      The NEF does some really good work but I’m a bit sceptical of their Autumn Statement analysis. For example, they point to low investment as a major problem that the Chancellor hasn’t mentioned. The investment stats are really just a response to low growth, not Government policy. With the PMI and growth figures looking stronger I’d expect investment to pick up over the next year, whatever the AS announced.

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