Rachel Reeves MP, Labour’s Shadow Chief Secretary to the Treasury, responding to NIESR forecasts suggesting the economy shrunk by 0.2 per cent in the second quarter of 2012, said:
"These are very concerning and disappointing forecasts. With the economy having already shrunk over the last 18 months, it would be yet another damaging blow to the Government’s economic credibility if they were to come true.
"Britain is one of only two G20 countries in a double-dip recession, long-term unemployment is soaring and so borrowing is now going up. That’s why we need a change of course and a real plan for jobs and growth. And we need a Chancellor focused full-time on the national economic interest, getting Britain growing and reforming our banks for the future."