A shrinking economy means growing dole queues

The UK economy shrank by 0.2% in the last three months of 2011 according to official figures.

Euro MP Peter Skinner reacted to the latest bleak news by renewing his call for a growth focused economic plan.

The new figures followed hot on the heels of the collapse of major chains Past Times and Peacocks and news that unemployment was at a 17 year high of 2.7million including 284,000 across the South East.

The MEP is backing Labour’s call for a cut in VAT, a national insurance holiday for 330,000 small businesses in the South East and investment in jobs for young people.

Peter Skinner MEP:

“These figures paint a bleak picture and reveal the brutal failure of the Tory economic plan. They are out of touch and blind to the damage they are doing to communities, businesses and families. Incomes are being squeezed, child poverty is soaring and long-term youth unemployment once again threatens an entire generation. The Tories risk throwing our future on the scrap heap.

“There is an alternative. We need a plan for jobs and growth. Businesses are the bedrock of our economy; by cutting VAT immediately and offering a tax break to small firms we could help keep them afloat and keep people in work. A £2 billion tax on bank bonuses could fund 5,000 jobs in our region for young people.”