Hain blasts slowest economic recovery since records began

Anti-austerity champion Peter Hain has launched a stinging attack on Chancellor George Osborne as figures reveal Britain is struggling through the slowest economic recovery on record.

Data compiled by the Trade Union Congress shows that the British economy has typically grown in size by 16.1% in the first five years after recession – however under George Osborne that number has struggled to reach 8.8%.

This news compounds the Tories economic woes as in January it was revealed that over one quarter of Wales’ working age population is economically inactive.

The Neath MP said, “We have to recognise the utter folly promoted by George Osborne and his Tory austerity addicts. Britain desperately needs growth and their cuts jeopardise the country’s economic security.”

Mr Hain continued: “Between 2010 & 2012 the government made a number of disastrous decisions which seriously harmed the public investment led recovery the last Labour government had started.”

“As the TUC’s research shows, the strongest recovery on record occurred after the Great Depression, when massive public investment helped create jobs, tax receipts and growth.”

In the last quarter of 2014 Britain’s economy grew by just half of a percentage point, much lower than estimates from the Office of Budget Responsibility and City of London had expected, while Britain’s growth prospects for 2015 have also been revised down to just 2.4% in total, after the OBR had initially confidently predicted growth of 3%.

Fears are growing of another recession in Britain as economic indicators are suggesting a general slowdown. Employment in Wales fell by 40,000 over the year from January 2014.

“A vote for a Tory is a vote for economic lunacy in the upcoming election”, said Mr Hain, as he urged Welsh voters to defy the neo-liberal orthodoxy that drastic cuts would balance the British economy.

A graph by the TUC details the average growth of the British economy in the five years after a recession.

Land Registry

Mr Peter Hain (Neath) (Lab): I congratulate my hon. Friend on securing the debate and on the eloquence with which she is advancing her case. Is she aware that the proposal has cast a big shadow of uncertainty and job insecurity over the staff of the organisation, some of whom work in my constituency, which is nearby, and that when Tesco recently advertised for staff to open a local store in nearby Briton Ferry, 15 posts attracted 600 applicants? These are communities of very high unemployment, and job insecurity is therefore a big problem in the area.

Mrs James: It is. I thank my right hon. Friend for that intervention. The Land Registry jobs are quality, well paid and well respected posts, and it is very important that we retain them in a mixed economy and give job opportunities and a way forward to people from all sorts of backgrounds. I am very loth to lose one job, of any type or description, from my constituency when, as he has just pointed out, they are all very important.

Economic Policies – Underemployment

Mr Peter Hain (Neath) (Lab): Will the Secretary of State admit that his economic policies are failing Wales disastrously? His new jobs are a mirage. One new worker in 10 is underemployed. They are part-timers seeking full-time work or temporary workers who want a proper job. There are underemployed breadwinners who are struggling to put food on the table and heat their homes. That is contributing to the 200,000 children who are living in poverty in Wales. Why does he not apologise for that shameful record?

Mr Jones: I will take no lessons from the right hon. Gentleman, whose party oversaw the trashing of the British economy and was responsible for the mess that we are having to clear up. The Government have created more than 1 million private sector jobs since we came to power, against the international trend, and we are proud of that.