I do blame the Conservatives (but then I blame them for everything bad, being a liberal lefty
). There have been huge cuts in public sector employment (estimated 50,000 jobs lost in 2010-2011) and there may be a further 500,000 to 600,000 jobs lost between now and 2015 as a direct result of reduced government funding. This has had a knock on effect on the private sector which is expected to somehow provide enough jobs to cover the public sector job losses while it suffers from the general public's lack of confidence in the economy and reluctance to spend, as well as banks not lending like they are supposed to; as a result of these, private sector employment has also fallen.
I don't have a degree in PPE so I fail to see how spending cuts will kick start the economy. My instinct would be to get people spending money (certainly not cut benefits because at least that money is going back into the economy) although I freely admit I dunno where all the money to do this would come from. Not that the government cuts are making any difference - the rate of public borrowing is still going up. So I think they dunno what to do either.
Totally off topic - sorry!