Today's GDP figures are the final nail in the coffin of Osborne's credibility

This was all so avoidable, and entirely predictable.

The Q2 GDP growth figures from the ONS today were absolutely awful. Indeed, it was even worse than I had expected, having predicted -0.5 per cent against a consensus view of -0.2 per cent. The number came in at -0.7 per cent, which meant that the economy has had three successive quarters of negative growth - four of the last five and five of the last seven.

The economy has contracted by 1.4 per cent over the last three quarters and by 0.8 per cent since the Chancellor's autumn statement in 2010. The UK and Italy are the only two major countries in double dip recession and growth has been worse in the UK over the last year than it has been in Spain. The decline was broad-based, driven especially by a collapse in construction, which declined by 5.2 per cent in Q2, following 4.9 per cent on the previous quarter. Production fell by 1.3 per cent and services by 0.1 per cent. The IMF forecast of 0.2 per cent growth last week already looks overly optimistic - I have pencilled in -0.5 per cent or worse.

The coalition government took over an economy that was growing and by its inept policies it has killed growth stone dead. In interviews today, the Chancellor claimed he was “relentlessly focused” on sorting the economy out in the same way (presumably as King Canute was also determined to keep the tide back?). This, as ever, was worthless drivel because it is clear to all that the government's economic policy of austerity has failed and they have no clue what to do. The only fix is a fundamental U-turn with tax cuts, especially VAT, and big incentives for firms to invest and hire today – not in three years time. And what about youth unemployment? Policies to get infrastructure going are welcome but they won't have any effect for years; they should have been implemented when the government took office - now it is too late to get the economy growing again anytime soon. The Tory-led government still has no growth plan. If it does, let’s hear it.

The recession deniers were out in force saying that they couldn’t possibly be wrong, so there must be something wrong with the numbers. Of course, the main reason for this is that they supported the government's austerity nonsense and have egg on their faces. Just to make the point for the umpteenth time – the average data revision over the last 20 years is +0.1 per cent and over the last five years -0.1 per cent. In fact, the data revisions have generally been on the low side when the economy is slowing, as occurred in 2008. The statistical chances of the data being revised down further are the same as being revised up.

I do recall the 35 business leaders, who wrote to the Telegraph in October 2010 to say:

It has been suggested that the deficit reduction programme set out by George Osborne in his emergency Budget should be watered down and spread over more than one parliament. We believe that this would be a mistake. Addressing the debt problem in a decisive way will improve business and consumer confidence....There is no reason to think that the pace of consolidation envisaged in the Budget will undermine the recovery.

It hasn't exactly worked out that way. There has been no recovery, the economy is smaller today than it was when they put pen to paper, and business and consumer confidence has collapsed. It would be interesting to hear from them today on why it all went so badly wrong. Their silence is telling.

I now have every expectation that within a few days the UK will lose its AAA credit rating. I never thought it was actually a big deal as proved by the fact that when France was downgraded and bond yields fell. But Slasher Osborne set it up as something he should be judged against and so we should all do that.

This was all so avoidable, and entirely predictable. Our incompetent, part-time Chancellor and his advisers should be removed from office and put out to pasture. Ed Balls was right.

I am very angry that this visitation of evil spirits had to be foisted on the British people. We deserve better. This really is time for the biggest U-turn in history - that's what failure brings. I really have no sympathy for the fools – Cameron, Osborne and Clegg especially – who talked the economy down by claiming it was bankrupt and falsely comparing the UK to Greece.

No more excuses.


"Slasher" Osborne has been proved wrong yet again. Photograph: Getty Images

David Blanchflower is economics editor of the New Statesman and professor of economics at Dartmouth College, New Hampshire

Richard Burden
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The warnings Bosnian gravestones carry for us in 2016

Xenophobia does not usually lead to Srebrenica. But it can do.

Two weeks ago, I joined a visit to Bosnia organised by Remember Srebrenica. If you have ever seen one of the Commonwealth War Graves cemeteries in Northern France, you will have a sense of what the cemetery in Potocari, near Srebrenica, is like. Row upon row of identical white headstones stretching into the distance. Whereas in France, of course, most of the headstones are marked by the cross, in Potocari they are white obelisks. Overwhelmingly, they mark the graves of Muslims.

In the 1990s, the old battery factory of Potocari was the headquarters of Dutch troops. They had been deployed to uphold the United Nations designation of the enclave as a safe area. Their presence, however, did not stop Serb troops from rounding up around 25,000 people sheltering at the base in July 1995. Once the UN troops stood aside, families were divided. Most of the women and children were loaded and sent west to areas of the country still controlled by the Bosnian government. The men and boys were loaded on to separate trucks. Within days, most of them were systematically shot.

Many other men and boys had already taken to the woods to escape, only to face shells, snipers and ambush on the way. Some, like 19-year-old Hasan Hasanovic, made it through to free territory around Tuzla. Many did not. Those did not die in the woods were either persuaded to give themselves up, or were captured. Like the men and boys who had been taken from outside the UN base at Potocari, most simply disappeared. To this day, their bones are still being found in or near mass graves in eastern Bosnia.

And so, 21 years on, I met Hasan at Potocari. July1995 was the last time he saw his twin brother Hussein, his father Aziz or his uncle, Hasan.

The former UN Secretary General Kofi Annan described the Srebrenica massacre as the worst crime on European soil since the Second World War. Indeed, the word massacre doesn’t convey the enormity of what happened. Earlier this year, the International Criminal Tribunal for the former Yugoslavia found 1990s Bosnian Serb leader Radovan Karadzic guilty of involvement in genocide. The verdict in the trial of military leader Ratko Mladic is expected later this year.

Nobody who visits Potocari can fail to be moved by what you see there. For me, it brought back memories of how, as a new MP back in the 1990s, I was one of those calling for more assertive international action to stop the carnage that was unfolding in Bosnia. It was an unfamiliar position to find myself in. All my political life until that point, I had been amongst those opposing involvement in military action abroad. Now I found myself supporting intervention. For three years before the Srebrenica genocide, people in Sarajevo had been starved of food, medicines and even the means to defend themselves as their city was remorselessly pounded from the hills that surround it. We knew it. We could see it on TV. We also saw that neither Europe nor NATO nor the UN were taking action that could have stopped it.

There were always so many geopolitical reasons not to intervene effectively. I heard them day after day from Ministers in the House of Commons. But that did not help the men, women and children who were dying in Sarajevo, and in 1995 it did not save Hasan’s twin brother, his father, his uncle or the 8,000 others who ended up in the mass graves around Srebrenica.

Since I have returned from Bosnia, two things keep dominating my thinking. The first is about Syria. The political circumstances that have led to the destruction of Aleppo today are not the same as those facing Sarajevo in the 1990s. For people trapped there though, the parallels must feel much more real than the differences. I don’t claim to have an off-the-shelf action plan for what the international community should do today any more than anyone else does. I just keep thinking how in twenty years’ time, people visiting Aleppo - hopefully reconstructed as Sarajevo has been today - will ask: “How could the world have let this happen in 2016?” What will be our answer?

The other thing that dominates my thoughts is that the genocide in Bosnia hit people like me. A man I met, who unexpectedly found himself becoming a soldier in 1992, told me how, before the war, he wore a t-shirt, jeans and an earring. On a good day, he would to listen to the Ramones. On a bad day, it would be the Sex Pistols. I am a bit older than him, but this was still my generation. And it happened In Europe.

What is more, the murders and the ethnic cleansing were not committed by strangers. So often, they were committed by neighbours. These were normal people who had been whipped up to dehumanise those who they were told were “different”. They were told that their way of life was under threat. They internalised it. They believed it. And, down the line, they no longer needed persuading it was “them or us”.

Most of the time, xenophobia does not lead to the horrors that have scarred Srebrenica forever. But it can do. That a lesson for all of us must never forget. So next time you hear someone talking about people living either down the road or across the sea being "them" not "us", don't shrug and walk away. Speak up and speak out instead.

Richard Burden is Labour MP for Birmingham Northfield and a Shadow Transport Minister. He visited Bosnia with the Remembering Srebrenica charity in October 2016. You can find out more about the Remembering Srebrenica charity here.

Richard Burden is MP for Birmingham Northfield. Follow him on Twitter @RichardBurdenMP.