Labour

UK trade figures expose Cameron and Osborne's myth that flatlining economy last year was down to the eurozone crisis - Reeves

Rachel Reeves MP, Labour’s Shadow Chief Secretary to the Treasury, in response to UK trade figures published today, said:

“These figures show the trade deficit narrowing, partly due to rising exports of goods but mostly down to a big fall in imports of goods.

“But they also expose David Cameron and George Osborne's myth that Britain's flatlining economy last year was down to the eurozone crisis. While the economy went into reverse at the end of 2011, exports to the euro area actually rose. They were up by 7.4 per cent on the previous year and up by 0.8 per cent on the previous quarter.

"Far from the eurozone crisis having a chilling effect on Britain, only rising exports kept us out of recession last year while our domestic economy was shrinking. Raising taxes and cutting spending too far and too fast choked off the recovery well before the recent euro crisis and so we are now badly exposed if that crisis deepens this year.

"Instead of blaming everybody else this complacent and out of touch government needs to take urgent action to boost jobs and growth, which are vital if we're to get our deficit down."