Rachel Reeves MP, Labour’s Shadow Chief Secretary to the Treasury, responding to revised GDP figures for the final quarter of 2012, said:
“These figures confirm that our economy went into reverse at the end of last year. Instead of the 2.8 per cent growth expected under George Osborne’s original plans we had just 0.3 per cent in the whole of 2012.
“Britain has stagnated under David Cameron and George Osborne and that is why people’s living standards are falling year after year and Britain has been downgraded. On growth, the cost of living, the deficit and even their own test of keeping Britain’s credit rating this government's economic policies have totally failed.
“We need urgent action in the Budget to kick-start our flatlining economy and help people struggling with the rising cost of living. That means bringing forward infrastructure investment, building thousands of affordable homes and giving tax breaks to small firms taking on extra workers. And it means cancelling April's tax cut for millionaires and introducing a new lower 10p starting rate of tax to help millions on middle and modest incomes.
“Families, pensioners and businesses cannot afford for this stagnation and failure to continue. David Cameron and his downgraded Chancellor George Osborne must finally heed the warnings or Britain will face more years of falling living standards and more long-term damage to its economy.”