Showing posts with label GDP. Show all posts
Showing posts with label GDP. Show all posts

Sunday, 30 January 2011

Weekly Round-up - 30.01.11

This week was dominated by figures released on Tuesday which showed that the UK economy had shrunk by 0.5% in the final quarter of 2010. Most economists had predicted 0.5% growth. Combined with December's inflation figure of 3.7% - way above the Bank of England's 2% target - and Mervyn King's warning that inflation could top 5% in 2011, it was a bad week for George Osborne. The figures were a gift to Labour but Ed Miliband failed to make the most of them at PMQs on Wednesday, as Cameron put in one of his best, and most statesmanlike performances.

The other big news this week was the belated publication of the Government's review into the UK's counter-terrorism measures. There was some good news - a reduction in the duration of detention without charge from 28 days to 14 days, curbs on police stop and search powers and measures to stop local councils using surveillance operations so much - and the review was definitely a success for Nick Clegg and the liberal wing of the Tories, but it did not go as far as some would have liked. Control Orders were replaced with TPIMs (Terrorism Prevention and Investigation Measures) but contain many of the same provisions, even if they are a little less stringent. The problem of dealing with these suspects outside the criminal justice system still exists though.

Elsewhere, Lord Lawson and Mark Pritchard helpfully stuck it to David Cameron by kicking up a fuss about the undesirability of coalition government. We also saw the MoD scrambling to defend itself against allegations from senior military figures that they were leaving a huge hole in Britain's defence capabilities by scrapping nine new Nimrod aircraft. And we were treated to more Eurozone grumblings as Germany continued to push for stringent budget checks across Europe rather than immediately back Commission President Jose Manuel Barosso's bail-out fund.  

Wednesday, 26 January 2011

PMQs Review - 26th January 2011

My prediction that the economic figures released yesterday would dominate PMQs was borne out as Ed Miliband made the UK's 0.5% contraction the focus for has six questions. The problem was that he faced the most agile David Cameron I've seen at the dispatch box in weeks and that he was relentlessly barracked by the Government benches.

Miliband got a cheer when he rose - reflecting new found belief on the Labour benches - but his first question was predictable and weak. He asked, in the deadpan way that he always does with his first question, what the cause of the poor economic performance was: Cue dozens of Tories and Lib Dems shouting 'YOU!' at the Labour leader.

Cameron's approach clearly confused Miliband. He stepped up and said the figures were 'disappointing' even without the impact of snow. Cameron taking responsibility and bringing up the bad weather first was clearly not something that Miliband was prepared for, and it exposed Miliband's inability to adapt. He asked Cameron if without the weather growth would have been flat. Cameron simply said 'yes'.

The next exchange began with Miliband's best line of the day, when he shot back at Cameron that the PM didn't understand that without growth there would be no recovery. But he was clearly rattled and the Tory backbenches began to mercilessly mock his stuttering style of delivery. Cameron responded by quoting the head of the OECD, who had said that before the Coalition's deficit reduction plan the economy had been 'out of control'.

The following question was another example of Miliband's apparent inability to 'war game' PMQs properly. If he'd been through a preparatory dual with an aide then he would have rapidly realised that claiming that the Labour Party left a legacy of growth was a poor strategy. Cameron jumped on the 'laughable proposition' that Labour left a 'golden legacy' and reeled off a list of Labour's economic failures.

Miliband was beaten. Lost. He didn't seem to know what he was going to ask so just made some comment about Cameron being out of touch. The Tories laughed at him. Miliband went personal and attacked Cameron's 'arrogance'. Cameron made a joke - which to be frank he's already used too much in the House - about Miliband's inability to think on his feet before highlighting Labour's own deficit reduction plans, which were due to start this year.

Miliband recovered with his last question. He launched into an attack on Andy Coulson, which wasn't particularly coherent but did raise an important point. He also raised the comments by David Davis, who said that without the former NotW man Cameron's inner circle was out of touch. Unfortunately he then said the Coalition's policies were 'hurting not working'. It didn't even rhyme properly. Cameron finished him off by asking why he was claiming credit for appointing Ed Balls when he didn;t want him in the first place and by outlining the coalition's plan to deal with the deficit to ensure growth.

I said yesterday that Miliband would have no excuses for not winning today. In fairness to him, Cameron's strategy was proactive and he gave his best ever performance against the new Labour leader. But so many of Cameron's lines were easily prepared put-downs to predictable questions. And too often when put on the spot Miliband simply failed to think quickly and adapt. He almost always starts with a simple factual question, before asking a couple more and then getting confused when the course of the debate takes a different route to the one he'd prepared. With better preparation he could be so much more effective.

Solid Cameron win.  

Tuesday, 25 January 2011

PMQs Preview - 26th January 2011

This is not going to be a long post. In fact I wrote that sentence just to beef it up a bit. Because PMQs tomorrow is only going to be about one thing: today's shock 0.5% GDP contraction. Balls has already launched a pretty effective broadside on Osborne tonight, claiming that the 0.7% GDP growth in the previous quarter was a legacy of Labour's spending plans and that these are the first set of figures that reflect the Conservatives' economic policies.

Surely even Ed Miliband can make this stick tomorrow. For all their bluster Cameron and Osborne know that the weather did not cause all this damage alone - and that blaming the snow is a line that won't play well in the House. Expect their VAT hike to take a beating. Despite this, Balls' record under Brown and the resignation of Alan Johnson late last week should give Cameron something to hold on to, even if Miliband can just point to Coulson and previous Tory calls for more financial deregulation. It should be fun...