Small Business Nightmare

Within just 48 hours of Alistair Darling presenting his budget forecasts, it was announced that the British economy shrank at the fastest rate in 30 years in the first three months of this year. 

Official figures showed gross domestic product (GDP) fell by 1.9% between January and March – which is the sharpest quarterly decline since the third quarter of 1979, the year when Margaret Thatcher came to power.

Whilst you’d expect George Osborne to rip into this data, there were many others who have aired critical comment on Darling’s forecasts – including ING economist James Knightley

“Today’s GDP report again highlights how optimistic Darling was in his budget assumptions and that the risk to the fiscal deficit remains heavily to the upside.”

Plus James Hughes, the chief investment officer at Black Swan Capital wealth management
” The UK economy is very clearly in serious, serious trouble, with more pain to come.”

“Our research suggests that the latter stages of this crisis will be characterised by rapidly escalating inflation and further weakening of sterling, much like the stagflation of the 1970s. The chancellor’s forecasts in the budget are now looking even more out of touch,” said Hughes.

Needless to say, the chief secretary to the Treasury, Yvette Cooper,said that the government stands by its forecast that the recovery would begin at the end of 2009.

Images of pigs and flying come to mind……