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.

All photos: India Bourke
Show Hide image

“They cut, we bleed”: activists Sisters Uncut protest closures of women's services

 “Our blood should not pay for our rape.”

Over 500 domestic violence survivors and support workers processed through central London this weekend. The protest, staged by the feminist direct action group Sisters Uncut, mourned the women’s services that are losing out as a result of the government's austerity drive.

Since November 2014 the group has occupied streets, burned copies of the Daily Mail, and hijacked the Suffragette film premiere. But on Saturday the mood was somber. In Soho Square the group staged a symbolic funeral service. Attendees stood in a protective circle, fists raised, while members took turns to read out the names of the scores of women who’ve been killed by men in the past year:  “Anne Dunkley, 67; Nadia Khan, 24; Lisa Anthony, 47…”. The youngest was just 14 years old.

The service culminated in a promise “to never forget” the dead, and also to protect the living: “We must love and support one another; we have nothing to lose but our chains".

As the protestors passed St Martins in the Fields Church, dressed in black veils and funeral attire, the crowd of passers-by broke into spontaneous applause. “It gave me goosebumps”, Caroline, an activist and former victim of abuse told me. “You expect people on the march to be supportive but not the people on the street. I’ve been on other marches and people normally complain about you being selfish and blocking up the streets but this response makes you feel like people do  care.”

The show of public support is especially welcome in the aftermath of the Chancellor’s Autumn Statement. Cuts to local authority budgets have already led to the closure of over 30 domestic violence services since 2010, including Eaves, a charity that provided services for single, low-income and vulnerable women.

Further erosions to local council budgets will only put more services and lives at risk, activists say. Also of concern is Osborne’s decision to devolve responsibility for raising a social care tax (of up to 2 per cent on council tax) to local authorities. This tips hostility to tax increases away from central government to local authorities, and could place greater pressure on women’s services to compete for funding.

The Chancellor offered a supposed silver lining to the cuts with the promise that VAT money raised from the EU’s compulsory tax on sanitary products will be ringfenced for women’s charities, such as the Eve Appeal and Women’s Aid.

The implication, however, that only women are to pay for helping the victims of domestic violence was met with derision from Sisters Uncut. As the marchers approached their final destination in Trafalgar Square, red dye turned the square’s famous fountains the colour of blood. “This blood won’t wash the blood from Osborne’s hands,” read one tampon-draped banner; “Our blood should not pay for our rape”, read another.

For those on the march, the cuts are an affront on many levels. All those I spoke to worked in some form of public service; everything from housing to foster care. But some have had to move out of the women’s services sector for the lack of funding.

Louisa used to work for a domestic violence service in London until it was forced to close last month. “I’m here because I’ve witnessed first hand what the cuts are doing to women and how much the organisations are having to squeeze what they can provide.”

All public services have legitimate claims to support - from the 14-strong police team that escorted the marchers, to the sweepers who were left to dredge the protesters’ roses out of the fountains and brush away the tampons that had fallen from their banners.

The danger, however, according to Caroline, is that the needs of domestic violence victims are all too easy to sideline: “This is by its nature something that goes on behind closed doors,” she says. As funding tightens, these voices musn’t be squeezed out.

Sisters Uncut is an intersectional group open to all who identify as women. The national domestic violence helpline offers help and support on 0808 2000 247. Members of the LGBT communities can also access tailored support from Broken Rainbow on 0800 9995428.

India Bourke is the New Statesman's editorial assistant.