Phi Wire Hand Picked Politics - Live

  • Anthony Wells | What the final polls tell us

    • source icon
    • 22:46
  • James Forsyth | Final polls put No ahead

    • source icon
    • 22:35
  • George Eaton | Salmond "could step down by November" if Scotland votes No

    • source icon
    • 18:22
  • James Forsyth | Salmond’s biggest myth

    • source icon
    • 18:06
  • Scotland’s No Voters Feel Threatened, Afraid To Speak Out And Think Their Countr...

    • source icon
    • 17:56
  • PoliticsHome | Only the latest five entries on the PhiWire are visible to non-subscribers

  • PoliticsHome | Only the latest five entries on the PhiWire are visible to non-subscribers

  • PoliticsHome | Only the latest five entries on the PhiWire are visible to non-subscribers

  • PoliticsHome | Only the latest five entries on the PhiWire are visible to non-subscribers

  • PoliticsHome | Only the latest five entries on the PhiWire are visible to non-subscribers

  • PoliticsHome | Only the latest five entries on the PhiWire are visible to non-subscribers

  • PoliticsHome | Only the latest five entries on the PhiWire are visible to non-subscribers

  • PoliticsHome | Only the latest five entries on the PhiWire are visible to non-subscribers

  • PoliticsHome | Only the latest five entries on the PhiWire are visible to non-subscribers

  • PoliticsHome | Only the latest five entries on the PhiWire are visible to non-subscribers

  • PoliticsHome | Only the latest five entries on the PhiWire are visible to non-subscribers

  • PoliticsHome | Only the latest five entries on the PhiWire are visible to non-subscribers

  • PoliticsHome | Only the latest five entries on the PhiWire are visible to non-subscribers

  • PoliticsHome | Only the latest five entries on the PhiWire are visible to non-subscribers

  • PoliticsHome | Only the latest five entries on the PhiWire are visible to non-subscribers

  • PoliticsHome | Only the latest five entries on the PhiWire are visible to non-subscribers

  • PoliticsHome | Only the latest five entries on the PhiWire are visible to non-subscribers

  • PoliticsHome | Only the latest five entries on the PhiWire are visible to non-subscribers

  • PoliticsHome | Only the latest five entries on the PhiWire are visible to non-subscribers

  • PoliticsHome | Only the latest five entries on the PhiWire are visible to non-subscribers

Story Tracker

Select Story:

Economy shrinks by 0.3%

Economy shrinks by 0.3%
Today's fall in GDP is a "reminder" of the difficulties Britain faces, George Osborne has said.

GDP fell by 0.3% in the last quarter of 2012, heightening fears the economy might suffer a triple-dip recession.

The Chancellor said the figure was "a reminder today that Britain faces a very difficult economic situation" and he insisted the Government had the right policies in place.

"We have got the right plan but of course it is not a plan that was ever going deliver results overnight. We said from the start, it was a long, it was a hard road but it was the only road this country could walk done," he told Sky News.

Deputy Prime Minister Nick Clegg this evening said the Government was "making progress" on the economy, but warned of a "long, painstaking" recovery.

"We’re making progress: we’ve cut the deficit by a quarter, a million jobs in the private sector, but there is some way to go before the recovery really takes root," the Lib Dem leader told BBC Look North.

Shadow Chancellor Ed Balls said the figures exposed the failure of the Government's economic strategy.

“I’m afraid that they show that David Cameron and George Osborne have been asleep at the wheel for the last two years," he told the BBC.

ONS economist Joe Grice said the economy was "close to flat", but also stressed that problems with North Sea oil fields had made a significant difference to the estimate.

"The mining and quarrying sector was seriously affected by extended and seasonally late maintenance to the North Sea oil fields - that effect reduced the estimate of GDP by about 0.2%," he said.

"The economy was probably, in underlying terms, close to flat. It extends the pattern that we've seen now for some time of a bumpy economy but on a rather sluggish trend."

Green Box: Economy shrinks by 0.3%Click to open

+ Expand all - Collapse all

Recommended External Links

Full access for £22 a month...

PoliticsHome PRO Find out more

Related PRO Content

The House Magazine

Nick Clegg: Office Politics

24/01/2013

On air

David Willetts: Glasgow will be the model of a future city

25/01/2013 on Today, BBC Radio 4

On air

Ed Balls: Growth figures expose govt's failings

25/01/2013 on BBC News

On air

Danny Alexander: Today's GDP figures a reminder of the challenges we face

25/01/2013 on The Daily Politics, BBC 2

Press Release

Labour: Capital investment & Nick Clegg

25/01/2013

On air

Ed Balls: George Osborne has choked off the recovery

25/01/2013 on Channel 4 News

On air

George Osborne: UK faces a difficult economic situation

25/01/2013 on Channel 4 News

PoliticsHome News

Thornberry slams 'reckless' Coalition

25/01/2013

On air

David Gauke: There is a clear strategy for growth

25/01/2013 on Newsnight, BBC 2