The UK economy hasn't grown more than the US

The US has grown by 2.3 per cent in the last year, while the UK has remained flat.

The final set of US growth figures before the presidential election were released today, showing that the economy grew at an annual rate of 2 per cent in the third quarter or a quarterly rate of 0.5 per cent. The Tories, unsurprisingly, are keen to point out that that's a worse performance than the UK, which, as we learned yesterday, grew at a quarterly rate of 1 per cent in Q3.  But they would be wise not to invite too much comparison of the UK and US economies.

First, while the US has grown by 2.3 per cent over the last year, the UK economy has failed to grow at all. As the Office for National Statistics reported yesterday: "GDP in volume terms was estimated to have been flat in Q3 2012, when compared with Q3 2011".

Second, while the US economy is now 2.3 per cent above its pre-recession peak, the UK remains 3.1 per cent below. The US has grown for 13 consecutive quarters, but we've only just recovered the output lost in the double-dip recession (a fate that the US, partly thanks to a policy of stimulus, rather than austerity, avoided). As a result, while they've grown by 3.9 per cent over the last two years, we've grown by just 0.6 per cent.

Finally, since the UK Q3 figure was artificially inflated by the bounce-back from the extra bank holiday in June (responsible for around half of the 1 per cent growth) and the inclusion of the Olympic ticket sales (responsible for 0.2 per cent), it's foolish of the Treasury to cite it as proof that we're "on the right track". Indeed, as I wrote yesterday, a significant number of forecasters believe it's possible or even probable that the economy will shrink in quarter four. Rather than complacently boasting about a one-off surge in growth, the Tories should be acting to prevent a triple-dip recession.

The US economy is now 2.3 per cent above its pre-recession peak, while the UK remains 3.1 per cent below. Photograph: Getty Images.

George Eaton is political editor of the New Statesman.

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The UN declares the UK’s austerity policies in breach of international human rights obligations

The UN are “seriously concerned” by the state of inequality in the UK.

In a damning new report, the United Nation’s Committee on Economic, Social and Cultural Rights has confirmed that the UK government’s austerity measures and social security reform are in breach of their obligations to human rights.

Drawing on evidence from Just Fair, the report considers a number of factors in its decision, including increased reliance on foodbanks, unemployment rates, the housing crisis, mental health care, and discrimination against migrants. The committee reminds the government of their obligations and calls upon them to make changes.

The UN committee said it was “seriously concerned” about “the disproportionate adverse impact that austerity measures” are having on disadvantaged and marginalised individuals and groups.

It also emphasised problems with welfare reform, saying it was “deeply concerned” about “the various changes in the entitlements to, and cuts in, social benefits”, including the reduction of the household benefit cap, the four-year freeze on certain benefits and the reduction in child tax credits. It added that these changes adversely affect “women, children, persons with disabilities, low-income families and families with two or more children”.

It said that these issues and others meant the UK government are failing “to meet their obligation to mobilize the maximum available resources for the implementation of economic, social and cultural rights”.

The report also expressed concerns over:

  • Unemployment, which, despite a small rise in the employment rate, continues to disproportionately affect people with disabilities, young people and people belonging to ethnic, religious or other minorities.
  • The high incidence of part-time work, precarious self-employment, temporary employment and the use of zero hour contracts.
  • The “persistent discrimination” against migrant workers.
  • The challenges faced by asylum seekers due to restrictions in accessing employment and the insufficient level of support provided through the daily allowance.
  • The national minimum wage, which “is not sufficient to ensure a decent standard of living in the State party, particularly in London, and does not apply for workers under the age of 25”.
  • Increases in the inheritance tax limit and value added tax, and reductions to corporation tax, in encouraging “persistent social inequality”.
  • The new Trade Union Act (2016), which limits the right of workers to undertake industrial action.
  • Sanctions in relation to benefit fraud and the absence of due process and access to justice for those affected by the use of sanctions.
  • The limited availability and high costs of childcare and the lack of involvement of men in childcare responsibilities.
  • Persistent underrepresentation of women in decision-making positions in the public and private sectors.
  • Violence against women with disabilities.
  • The increased risk of poverty for people with disabilities, people belonging to ethnic, religious or other minorities, single-parent families and families with children.
  • The persistent critical situation in terms of availability, affordability and accessibility of adequate housing (in part as a result of cuts in state benefits), the lack of social housing, and lack of adequate access to basic services, such as water and sanitation, for Travellers.
  • Reforms to the legal aid system and the introduction of employment tribunal fees, and the resulting restriction of access to justice, in areas including employment, housing, education and social welfare benefits.
  • The significant rise in homelessness.
  • The country-wide reliance on foodbanks.
  • Discrimination in accessing health care services against refugees, asylum-seekers, refused asylum-seekers and Travellers.
  • The lack of adequate resources provided to mental health services.
  • Persistent serious shortcomings in the care and treatment of older persons, including those with dementia.
  • Significant inequalities in educational attainment, especially for children belonging to ethnic, religious or other minorities and children from low-income families which has the effect of limiting social mobility.
  • Increasing university fees, which affect the equal access to higher education.
  • Lack of corporate regulation.
  • The way international development funds are used overseas.
  • The announced plan of replacing the Human Rights Act of 1998 by a new British Bill of Rights.
  • The criminalisation of termination of pregnancy in Northern Ireland.
  • The lack of effective measures adopted by the State party to promote the use of Irish Language in Northern Ireland.
  • The lack of involvement and participation of Northern Ireland in this review process, and the limited information available on the enjoyment of economic, social and cultural rights in the British Overseas Territories and the Crown Dependencies.

Anna Leszkiewicz is a pop culture writer at the New Statesman.