Response to the IMF’s report on the UK economy

Ed Balls MP, Labour’s shadow chancellor, in response to the IMF’s report on the UK economy, said:

“The IMF is right to call for action to boost the British economy and to stop slow growth and high unemployment causing long term damage to our economy.

“A year ago the IMF warned that if economic growth undershot expectations, the government should boost the economy with temporary tax cuts and greater infrastructure spending – as Labour has called for in our five point plan for jobs and growth.

“Since then our economy has been pushed into a double-dip recession. How much worse do things have to get before David Cameron and George Osborne finally take action? There is no case for delay and there can be no more excuses. Now is the time to act. If we fail to do so, and we see years of slow growth and high unemployment being entrenched, Britain will pay a heavy long term price.

“We have to get the deficit down but as Christine Lagarde has warned the right pace is essential and growth is necessary for fiscal credibility. In Britain cutting spending and raising taxes too far and too fast has backfired, with the resulting slow growth and high unemployment meaning the government is set to borrow an extra £150 billion and borrowing last month higher than a year ago.”

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Posted May 22nd, 2012 by Ed's team