John Major: We are through the worst of the economic storm

Published on 17/09/2012 01:53

Britain is through the worst of the economic storm, Sir John Major said yesterday.

The Conservative former prime minister, below, said data showed the recovery had begun, with employment and the stock market rising.

He also urged Tory MPs to rally behind David Cameron amid mutterings about his leadership, and predicted a two-tier Europe within a decade.

Speaking on the 20th anniversary of Black Wednesday, which marked Britain’s exit from the exchange rate mechanism, Sir John likened today’s UK economy to the early 1990s, when chancellor Norman Lamont was widely mocked for claiming he could see the “green shoots of economic spring”. Sir John said: “Norman Lamont was taken to pieces by commentators for suggesting there were green shoots, but in retrospect we can see Norman was right.

“Recovery begins from the darkest moment. I’m not certain, but I think we have passed the darkest moment.”

Sir John told BBC1’s Andrew Marr Show there were “oddities” in economic data.

He added: “Why in the depths of this recession is employment growing? Why is industrial production going up? Why has the stock market risen?

“There are things happening that will become apparent. My guess is that in due course we will find we have passed the bottom.”