Economy

Although three days this week have been taken up with the consideration in Committee of the European Union Bill the announcement that the economy shrank ny half of one per cent in the last quarter of 2010 was probably the major news of the week. The thing that surprised me was the number of commentators and ( perhaps less surprisingly!) opposition politicians who suggested that this ought to result in the Chancellor changing has economic policy. I am sure he will not change and he absolutely right not to. There is no doubt that the problem with our economy is that we are spending more than we earn every month every year. Without balancing the budget the outcome is certain we will eventually be unable to borrow any more and the result will be that others will be telling us to make savings as the price for funding our spending.