Downgraded IMF forecasts are another damaging blow to government’s economic credibility

Ed Balls MP, Labour’s shadow chancellor, responding to the IMF’s latest growth forecasts for the UK economy in its World Economic Outlook, said:

“Coming just hours after George Osborne complacently insisted he would cling on to his failing plan, these downgraded IMF forecasts are another damaging blow to the government’s economic credibility.

“Twelve months ago the IMF forecast growth of 1.6 per cent in 2012 and said a plan B would be needed if growth were to be lower than expected. A year on, with Britain in a double-dip recession, borrowing rising as a result and growth forecast to be minus 0.4 per cent, there can be no question that a change of course is urgently needed.

“The IMF has rightly warned that the government’s policies risk causing permanent damage to our economy and growth is needed to get the deficit down. And, like Labour, they’ve said a plan B should include temporary tax cuts and additional infrastructure investment. It’s time David Cameron and George Osborne finally listened and took action to kick-start our economy before even more damage is done.”

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Posted October 9th, 2012 by Ed's team