Even though the Office for National Statistics says the “special factors” such as the unusually warm weather, the Royal Wedding and the Japanese tsunami reduced the overall figure; commentators are bound to point out that the Royal wedding was almost universally acclaimed as a fillip for the sagging economy. The truth is, consumer confidence is ebbing away as purse strings tighten and employers are starting to feel the pinch of an economy that is not yet dead, but rapidly getting there. The growth of just 0.2% over the last nine months is parlous and compares very unfavourably with the figures Gordon Brown’s strategy posted of 2.1% in the previous nine months.

Once again, the OBR will have to downgrade its forecast – the fourth time since it was established just over a year ago.

Osborne’s supporters are casting around for objects of blame, but the real comparison is with Germany and France, both of whom have enjoyed good growth in the same period as a result of their economic policies and in reality it is the polices of the government of starving the economy and imposing higher tax on purchases that are causing the steady slide to another recession.

When Alistair Darling reduced VAT to 15 per cent during the financial crisis, consumers spent £9bn more than they otherwise would have done. A similar reduction would enhance consumer confidence and get the economy going again. Osborne is getting it wrong – the figures don’t lie.

Osborne remains bullish however, saying “The positive news is that the British economy is continuing to grow and is creating jobs. And it is positive news too at a time of real international instability we are a safe haven in the storm. Our economy is stable at this time because this Government has taken the difficult decisions to get to grips with Britain’s debts. Abandoning that now, as some argue we should, would only risk British jobs and growth.”

Meanwhile, the government is following Gordon Brown’s lead by introducing more Quantitative Easing into the economy, something that has largely gone uncommented on, except from the increasingly isolated Vince Cable.

Rt Hon Peter Hain

New funding arrangements for Wales will ensure a fair deal for the people of Wales for years to come. Under the deal negotiated with the UK Treasury the UK will take action if Wales becomes disproportionately disadvantaged by the Barnett formula.

Mr Hain said “This commitment is a major breakthrough for Wales. The Barnett formula has served Wales well over the years but action was needed to ensure that funding did not fall below what Wales needs”.

“The financial situation is tough right now but we must not forget our principles. I am committed to the devolution process. For it work the right level of funding is needed. This shows the Government is committed to making devolution work. Next year the Welsh budget will rise to almost £15.5 billion, helping to ensure the delivery of front-line services that the people of Wales need. This deal will ensure Wales will always get the best possible deal in the future”.

Mr Haid added ” The Holtham commision made clear that, if we do not take action, spending could decline relative to the rest of the UK. That is not acceptable. And that is why I have fought so hard for this new commitment from the Treasury to assess the impact of future spending reviews in Wales. If a spending review results in a bad deal for Wales, if Wales is disproprtionately disadvantaged compared to other parts of the UK, then we now have a mechanism to take action”.

The party’s new tax plans will see tax cuts for millions of people, paid for by closing tax loopholes, making polluters pay and introducing a ‘mansion tax’ on homes worth over £2million.

Jenny Randerson AM said, ‘These are ambitious plans which will mean that up to 6 200 people in Cardiff Central will pay no tax at all.

‘In addition to this, a further 25 000 people in the Constituency will save £700 a year – giving them an extra £60 a month in their pay packets. The vast majority of taxpayers in Cardiff will benefit from our fair tax plans.”

Kirsty Williams, Leader of the Welsh Liberal Democrats, said “This will help more people who are feeling the pinch at the moment to get by – and boost the economy by making sure ordinary hard-working people are better off.

‘It is time for a more fair and simple tax system – and it is clear that the Liberal Democrats are the only party with the plans to do this.’

David Melding AM

Comment on today’s figures which show that the rate of so-called ‘enterprise births’ or new business start-ups in Wales is among the lowest in the UK, Shadow Minister for the Economy David Melding AM said:

“It is essential for the future health of the Welsh economy that we develop growth in the enterprise culture.

“That’s why we need to look at the resources we provide to people from within Wales seeking to start a business, and not be so reliant on outside investors.

“It is disappointing we have the second lowest rate of so-called enterprise births in the UK, but more encouraging that the five year survival rate is at the UK average.

“Support for new businesses must come from government, and is even more important at a time of recession.

“That’s why we will continue to press ministers in Cardiff to ease the burden on businesses across Wales from the proposed business rates revaluation due to come into effect next April.

“This rates rise could determine whether some entrepreneurs set up business at all, or whether existing firms remain trading, lay off staff, or shut up shop altogether.”