Sunday, July 29, 2012

Osborne 'will permanently weaken Britain'

George Osborne's refusal to change the coalition's deficit reduction strategy despite the deepening double-dip recession will "permanently weaken" Britain's economy, Ed Balls claims today.

The Shadow Chancellor, in an interview with The Independent on Sunday, appeals to Business Secretary Vince Cable to join him in a "new national consensus" on the future of the economy. The move is designed to drive a wedge between dissenting Lib Dems and the Government.

Mr Balls says the Government's "sit on your hands strategy" of hoping the Olympics will drive the country out of recession is "dangerous" and will leave families and businesses paying a "long-term price".

The grim warning follows worse-than-expected GDP figures last week, which showed the British economy had shrunk by 0.7 per cent in the last quarter. Read More