With an ally in No 10 and the return of growth, Osborne can celebrate—for nowby Jay Elwes / April 25, 2013 / Leave a comment
As suggested on this blog yesterday, Britain has not slipped back into recession—there is no triple dip. The Office for National Statistics released its figures this morning at 9:30, revealing that economic output in the first quarter of the year was 0.3 per cent.
In any other circumstances, this would be regarded as measly, barely growth at all. If the Chinese were to release similar figures, it would signify severe economic crisis.
But for Britain and for George Osborne, 0.3 per cent counts as good news. Anything other than a positive number from the ONS this morning, and he would have faced a ferocious attack from all sides. Labour would have said that his austerity programme was too much too soon, a view also expressed last week by senior officials at the IMF. On his own side, the more hawkish members of the Conservative party would have accused him of not getting the national debt under control.
But those dangers have now passed. This morning’s feeble growth figures have given the chancellor a breathing space—a narrow one but space all the same.
And there was more good news for the chancellor with the announcement that Jo Johnson, the brother of the somewhat more high-profile Boris, has been made head of No 10’s policy unit. His job is, in effect, to write the Conservative party’s next election manifesto.
Johnson jnr is a contemporary and friend of the chancellor. It was Osborne who encouraged him to join the Conservative party before t…