Labour

BCC forecasts would be very disappointing if confirmed by events - Reeves

Rachel Reeves MP, Labour’s Shadow Chief Secretary to the Treasury, responding to the latest British Chamber of Commerce forecasts said:

“These forecasts would be very disappointing if confirmed by events. Their estimate is far lower than the OBR’s anaemic growth forecast of 0.8% for 2012 in March at just 0.1% for the year.
 
“With the BCC arguing for infrastructure investment and targeted tax cuts to get the economy moving again, what more evidence can David Cameron and George Osborne need that their policies have failed and that they now need a change of course and a plan B for growth and jobs?
 
“We are currently in recession as a result of the Government’s failed plan. We urgently need growth and if as these forecasts imply the economy effectively flat-lines for the rest of this year that would be terrible news for families, who even under current Government forecasts are facing low and stagnant growth throughout this year. We will pay a heavy long term price.  
 
“And far from cutting the deficit these forecasts raise the fear that borrowing might be even higher than forecast. That comes at a time when the Government is already borrowing £150bn more than planned over the parliament due to their failure on jobs and growth.”