Rachel Reeves MP, Labour’s Shadow Chief Secretary to the Treasury, responding to the CBI’s quarterly economic forecast, said:
"These very disappointing forecasts suggest the short-term boost from the Olympics will not be enough to counteract the longest double-dip recession since the Second World War. Despite the eurozone crisis Britain is just one of two G20 countries in a double-dip recession and our shrinking economy has seen borrowing rise by a quarter so far this year.
“With growth forecasts slashed not just this year but next year too, David Cameron and George Osborne should now admit their plan has failed and change course before even more long-term damage is done.
“Ministers must stop dismissing policies to boost jobs and growth which Labour and business groups have been calling for, such as examining the case for a British Investment Bank, tax breaks for small firms taking on extra workers and bringing forward infrastructure investment.”