AS someone who works in the construction industry I can say that without doubt the past twelve months have been dreadful. The residual contracts from the previous government have come to an end and nothing has replaced them.
This doesn't just affect roads and construction, but also quarrying. With housing also being in the dumps it's been no picnic.
There is some truth in that the problem was caused by Labour's deficit. But then they were caught out by the recession. Gus O'Donnell (former head of the Civil Service) has admitted that he (and the Civil Service) didn't see it coming. The Darling budget of 2010 was designed to deal with the deficit but also to try and maintain the fragile growth that was in the economy.
Osbourne's 2010 budget and the autumn statement wrecked all that and stopped growth dead - people stopped spending because they could see what was coming.
Putting up VAT to 20% was the final nail in the coffin of the economy.
I reckon for the first 18 months or so a new government can blame problems on the last lot, but then it's all down to them as their policies start to take effect.
It's clear that this problem is totally down to Cameron and Osbourne "too far and too fast" is absolutely right. Why did they do it this way? Nothing to do with economics and everything to do with politics and election timing. Unfortunately they seem to have cocked up big style. They've painted themselves into a corner and it's hard to see how they can get out of the mess they've made without either a change of leadership or a general election.
