Big or small, this recovery is not making itself felt

Outlook Forget the political Punch and Judy show over the headline numbers. Britain’s economy faces some serious issues, and they are not being addressed.

Yes, the economy is growing, and even though the 0.3 per cent recorded in the first quarter of this year is a disappointment it ought to pick up speed again later in the year.

The trouble is, we’re still spending too much, and producing too little. Jobs are being created, but too many are poorly paid and don’t offer much in the way of prospects. Meanwhile a small army of people who want to work full time are stuck in part-time jobs, despite falling unemployment. Then there is the issue of zero-hours contracts.

Britain might have the fastest growing economy in Western Europe, but its citizens aren’t really feeling it, even though their real incomes have started to outstrip inflation. Behind the headline numbers, the picture isn’t a particularly pretty one (see David Blanchflower's analysis).

Perhaps that helps to explain why the Coalition appears not to be getting the credit it might expect for the recovery that it has presided over.