Ministry of Truth?
Well, there you have it – the ONS or Ministry of Truth speaks.
British economy is showing some signs of recovery – retail sales fall by 1.8% – weather blamed.
BCC - there is no significant sign that the economic recovery is gathering momentum - risk of a double-dip recession.
Experian - Business insolvencies – down from 9 in 10,000 to 7 in 10,000 – 2007 levels – surely some mistake El Reg?
The problem here is that the economy is being kept alive through government injections etc. When government support is withdrawn, as is expected over the next 2 years, we will have a massive increase in Taxes and probable economic stagnation possibly leading to another recession (the 1930’s depression was a double dip, the second coming 4 years after the first). Over the last 6 months the banks and largest companies have been adjusting business policy to accommodate projected withdrawal of government support and the related increase in costs. This is having a knock-on effect for smaller businesses and profitability. Personally, I wont take any stats as being useful until after the end of the financial year and forthcoming election!
Experians insolvency stats are of some interest – holding on until after the end of the financial year, hoping things will get better? Many small businesses have cut back and adjusted business plans, those that didn’t went under. Will there be more cuts and adjustments during this year – I think so!
Piccy of your local friendly Tax Man - always there to help!