Rachel Reeves MP, Labour’s Shadow Chief Secretary to the Treasury, responding to revised GDP figures for the third quarter of 2012, said:
“These figures show that, even with the welcome end of the longest double-dip recession since the Second World War, our economy has shrunk by 0.1 per cent over the last 12 months. With our economy flatlining and long term unemployment increasing, borrowing is rising so far this year to pay for this economic failure.
“There remain significant challenges ahead with more tax rises on the way, small business lending down and the eurozone still in crisis. That’s why we need action not complacency from David Cameron and George Osborne to ensure we have a strong and sustained recovery.
“With the construction sector shrinking, the Government should use the funds raised from the 4G auction to build 100,000 affordable homes and create hundreds of thousands of jobs. And we need further action to boost jobs and growth including bringing forward long-term infrastructure investment, a temporary VAT cut and a bank bonus tax to fund a jobs guarantee for young people.
“Next week's Autumn Statement must set out a change of course, not more of the same failing policies.”