Complacency is not an option

A DIRECT question from Ed Miliband forced David Cameron to describe yesterday’s GDP figures as “a success” – before the Prime Minister lambasted Labour for talking Britain down and then comparing this country favourably to debt-ridden nations like Ireland and Greece that have required bailouts from Europe. At least we’re not in that position, argued the Tory leader.

Mr Cameron’s robust defence may have appeased many of his backbenchers – but his language, and performance in the House of Commons, revealed hints of complacency and showed little comprehension of the very real difficulties facing families and businesses in these parts.

If these growth figures constitute success, what will resemble failure on this coalition’s watch? For, while Britain has avoided the ignominy of a double dip recession in spite of the New Year VAT increase, this modest rise does no more than offset the negative growth that was recorded in the last quarter of 2010.

It also reveals a number of contradictions that, again, highlight the fragility of the recovery – and the need for a concerted strategy, on Mr Cameron’s part, to inspire a private sector-led recovery across the whole country.

For, while Ministers are keen to see retail prosper, consumers are reluctant to spend excessively because of fears about their own job security and increases in the cost of living, with fuel costs at a record high.

Likewise the continuing dilemma over interest rates that are likely to remain at a historic low though the summer. This is good news for borrowers – but costly for savers and pensioners who have seen their incomes squeezed. Central to the recovery remain the banks – and the extent to which they should be lending more money to small businesses and others.

This is why many will dispute Mr Cameron’s verdict at Prime Minister’s Questions. For, while any growth is a “success”, and some radical action was required to retain the confidence of the international monetary markets, Britain’s road to recovery will be a long and winding one. Perhaps the PM should have been providing some humility – a commodity that has been virtually non-existent ahead of next week’s elections – before providing businesses with the confidence that they require to bring about a decade of sustained success.