Angela Eagle MP, Labour’s Shadow Chief Secretary to the Treasury, said in response to today’s services index showing the biggest monthly fall for a decade:
“These figures add to a bleak picture for the UK economy, which has flatlined since last autumn’s spending review and the VAT rise.
“It's no wonder that even the Chancellor's former supporters, from the head of the IMF to the founder of the world’s biggest bond fund, are now warning of the dangers of cutting too far and too fast and urging a change of course.
“Our complacent Chancellor needs to realise that carrying on regardless with a plan that isn’t working is not a credible policy. We need leadership on the world stage to agree a global plan for growth and a more balanced deficit plan that puts jobs and growth first. To kick-start the economy the Government should temporarily cut VAT and use the money raised from a tax on bank bonuses to build thousands of affordable homes and get people off the dole and into work."