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LONDON, April 25 (Reuters) - Britain's economy slid into its second recession since the financial crisis after official data unexpectedly showed a fall in output in the first three months of 2012, piling pressure on Prime Minister David Cameron's embattled coalition government.

The Office for National Statistics said Britain's gross domestic product fell 0.2 percent in the first quarter of 2012 after contracting by 0.3 percent at the end of 2011, confoundi ng forecasts for 0.1 percent growth.

The UK has sunk back into recession (Image © AFP)

Most economists had expected Britain's $2.4 trillion economy to eke out modest growth in the early 2012, but these forecasts were upset by the biggest fall in construction output in t hree years coupled with anaemic service sector growth and a fall in industrial output.

Wednesday's figures will be a deep blow for Britain's Conservative / Liberal Democrat coalition, which has slid in opinion polls since a poorly received annual budget statement in March and risks embarrassment at local elections on May 3. The government is also under pressure over revelations about its close relationship with media tycoon Rupert Murdoch.

The government desperately needs growth to achieve its overriding goal of eliminating Britain's large budget deficit over the next five years.

[Related story: Expert reaction to the UK's slide back into recession]

Britain's economy contracted by 7.1 percent during its 2008-2009 recession and recovery since has been slow, with headwinds from the euro zone debt crisis, government spending cuts, high inflation and a damaged banking sector.

Wednesday's data showed that output was still 4.3 percent below its peak in the first quarter of 2008, and the economy has only grown by 0.4 percent since the government came to power in the second quarter of 2010.

Output in Britain's service sector - which makes up more than three quarters of GDP - rose by just 0.1 percent in the first quarter after falling 0.1 percent in Q4 2011, ke pt down by a fall in output in the large business services and finance sector.

Industrial output was 0.4 percent lower, while construction - which accounts for less than 8 percent of GDP - contracted by 3.0 percent, the biggest fall since Q1 2009.

Britain's Office for Budget Responsibility forecasts growth of 0.8 percent this year. Wednesday's data shows that first quarter output was no higher than a year earlier.

The Bank of England has warned that there is a risk of another contraction in the second quarter of 2012, due to an extra public holiday. But unlike during the previous two quarters, it does not appear keen to provide further monetary stimulus through quantitative easing asset purchases, due to above-target inflation which looks stickier than before.

The BoE, and a number of private-sector economists, had argued before Wednesday that the underlying health of Britain's economy was stronger than ONS data suggested, due to relatively upbeat private-sector surveys and a fall in unemployment.

The ONS's preliminary estimates of GDP are the first released in the European Union, and are based partly on estimated data. On average, they are revised by 0.1 percentage points up or down by the time a second revision is published two months later, but bigger moves are not uncommon. (Reporting by David Milliken and Fiona Shaikh)

[Related link: What is a double dip recession?]

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Wasn't a surprise to us, was it? Customers disappearing like snow off a dyke, money not being spent, large parts of the working week like a human desert.

Tories get in you can always count on the same routine. Attack the workming class, increase unemployment to drive down wages and more profit and tax breaks for the capitalist class.

To incentivise workers you take more from them, to incentivise the rich you give them more money.

If this coaltition lasts the full five years we'll truly be in the toilet.

BTW We're on our erse end and we've just loaned the IMF just under £10 billions.

Who're the dafties here?

_________________
Skull, "You are a police inspector, aren't you?"
Cab Inspector Smith, "Yes."
Skull, "So, are you going to tell Mr Taylor what his rights are?"
Smith, "And ... What rights?"

Jasbar: ~ Can safely I assume that you're not a Tory!

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Don't dream it ~ Be it.

I don't think you can safely assume anything with Jasbar

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http://wingsoverscotland.com/ http://www.newsnetscotland.com/

Have you not all heard,“we are all in this together?"

My son is in the process of joining the RAF, because of the state of the economy. As he put it, “where's the work, and even if you get a job, the hours are crap and so is the pay.”

He's of the opinion. This is what he has to do to make money and to get qualifications and hopefully, without getting killed.

tell me about it....my daughters boyfriend gets posted to Afghanistan in September

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Think of how stupid the average person is, and realize half of them are stupider than that.
George Carlin

Posted huh...the deep defence cuts means they're sending him there by Royal Mail..

I really do believe we need a revolution. What the [edited by admin], do millionaire etonians know about life in this country? To them, it's just a political game, like playing chess with peoples lives. They don't give a [edited by admin], about your average Joe. It's more for them and less for us, and if they happen to [edited by admin] things up, it's not their problem, but ours.

Keynes wrote; "Nothing corrupts a society more than a disconnect between effort and reward".

Everything which is going on at the moment is to the benefit of the 1% and to the disadvantage of the other 99%.

Greece is one obvious example, although Italy has followed suit.

They have been bailed out, yet they have no control over their economies whatsoever, they have been told they must 'deregulate' state owned businesses, in other words, sell them to the governments and banks from other countries, they must cut wages and cut jobs, and then start to repay the banks and governments which loaned them the money.....they're struggling to meet the interest, never mind repaying loans.

Those countries should have said, f*ck you your not getting any cash......but those running the countries are as corrupt as those giving the money.

This country is just as bad, look at the vultures who surrounded RBS after the bail out.....they sold the crown jewels off and left the tax payer with the toxic assets.

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Think of how stupid the average person is, and realize half of them are stupider than that.
George Carlin

Was that the bit about restricted taxi numbers?

maybe......but I dont think he was meaning that, and taxis a minor distraction when it comes to the billions that have been robbed from the economy by private companies with the blessing of politicians who are inept.

By all means.....deregulate taxis till your hearts content.....it doesnt make a bit of difference if the public have no money to hire them.

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Think of how stupid the average person is, and realize half of them are stupider than that.
George Carlin

You don't say



So if it's a 'minor distraction' then why restrict in the first place then?



So you're saying it doesn't matter either way then, or do people just spend money on taxis if they're restricted?

If you carry on turning your eyes like that your going to end up looking rather strange.

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Think of how stupid the average person is, and realize half of them are stupider than that.
George Carlin

Makes you proud to be British doesnt it........we just gave £200Million to Pakistan btw http://www.bbc.co.uk/news/world-south-asia-12617170


Staggering rise of the British food bank: One opens every week after rise in families unable to afford to eat


One in five Britons are borrowing money for groceries because of the soaring cost of living

Shocking figures have revealed that every week a new food bank opens in Britain as more people find themselves struggling to make ends meet.

And the number of people needing emergency aid is expected to rise with many food banks operators worried that the full impact of the recent budget will not kick in until 2013.

There are now over 190 food banks nationwide, 88 of which were launched in 2011 alone.

Food bank recipients are not usually the homeless - they are low-income working families who hit crisis, people who have been made redundant or people experiencing benefits delays.


'More and more people on low incomes are finding it impossible to make it to the end of the week. Across the UK the Trussell Trust food bank network is facing dramatic increases in demand for help as front line care professionals refer more of their clients to us,' he said.

Food banks have noticed that there has been a marked increase in the number of young people needing help since January, 2011 when the government scrapped the Educational Maintenance Allowance (EMA) paid to working class youth to seek higher education.


Julie-Anne Wanless, a food bank co-ordinator in Liverpool told The Times: 'Most of us are only one or two pay packets away from not having any money,' she said.

Recipients of food bank supplies are usually identified by care professionals such as doctors, health visitors, social workers, CAB and police.
They are issued with a voucher which they can redeem at a food bank.
The Trussell Trust food banks provide a minimum of three days emergency food and support to people experiencing crisis in the UK.

WHAT'S IN A FOOD BANK BOX?

Each foodbox contains a minimum of three days nutritionally balanced, non-perishable food.

This could be delivered in a box to a client's home or received in the form of 10 meals at a the food bank centre.

Milk (UHT or powdered)
Sugar (500g)
Fruit juice (carton)
Soup
Pasta sauces
Sponge pudding (tinned)
Tomatoes (tinned)
Cereals
Rice pudding (tinned)
Tea Bags/instant coffee
Instant mash potato
Rice/pasta
Tinned meat/fish
Tinned fruit
Jam
Biscuits or snack bars

Last year their UK food bank network fed over 60,000 people experiencing food poverty and this year they predict they will feed over 100,000 people.

But the charity fears the situation is going to worsen in the near future.

'With incomes flat-lining or falling and prices steadily rising we expect the situation to get significantly worse. The full impact of the recent budget won’t kick in until 2013 and again squeezes people on lower incomes hardest so we are gearing up for a long period of intense pressure,' said Mr Mould.

Almost 40 per cent of food bank clients last year experienced benefit delay, according to the charity.

Anne-Marie and Danny, 22, were forced to use the food bank when a delay in benefits hit at the same time as Danny was off work with flu.

He received no sick pay and finances got so tight that they were faced with eviction as well as having no money for food.

The couple and their 18-month-old daughter, Tia, were living and sleeping in one room to reduce heating bills.

They resorted to borrowing a tin of soup from their neighbours to stop little Tia going hungry.

‘I don’t know what we would have done next if it wasn’t for the foodbank’, said Danny.

There are some people who believe that in Britain where more than 13 million people live in poverty, food banks are unnecessary.

Last year former Tory MP, Edwina Currie told Radio 5 live she did not believe people in the UK were going hungry.

'Are you telling me people in this country are going hungry? Seriously? Seriously?' she said in October.

But a recent survey revealed that one in five Britons are borrowing money for groceries because of the soaring cost of living.

One in four said they have had to dip into their savings to buy food or other daily essentials, while 19 per cent have gone into debt to do this.

Another 10 per cent said they could envisage borrowing money to buy food in the future.

The survey by consumer group Which? found that only 43 per cent of consumers feel they can afford to live on their income, while 36 per cent admitted to finding things difficult – twice the proportion who were struggling in 2006.

A separate study by Scottish Widows found evidence of families subsidising less well-off members to the tune of almost £13,000 in recent years.

Executive director Richard Lloyd said: ‘Over half of UK consumers are not coping on their current incomes. Worryingly, one in five people told us they had gone into debt just to buy food and other essential goods.

‘We know consumers are worried about rising food and energy prices. Our research also highlights significant changes being made to other buying decisions.’

Read more: http://www.dailymail.co.uk/news/article ... z1t4ygP7Wq

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Think of how stupid the average person is, and realize half of them are stupider than that.
George Carlin

Well I'll give you that, and it's a good job I didn't use this then

I agree. I just don't understand why the people of this country are putting up with the greed and corruption. Their apathy is incredible. Everything going on now is just a pi8s-take but no one seems to care. It's actually like they believe the Cameron mantra “we are all in this together.”

Where the fu*k is the tipping point?