David Hanson MP, Labour's Shadow Treasury Minister, in response to disagreements between Ministers over how to get the economy growing again, said:
"It's increasingly clear that this Government is at sixes and sevens about what to do to get our stalled economy growing again. And even David Cameron now seems to be losing faith in George Osborne's economic policy.
"That's no surprise after a week when we learned the recovery has been choked off by tax rises and spending cuts that go too far and too fast. This is bad news for families and businesses, but it will also make it much harder to get the deficit down.
"Abolishing maternity pay is not a credible plan for growth and nor is carrying on regardless. What we urgently need is a balanced deficit plan that puts jobs and growth first. Temporarily reversing the VAT rise would put money back into the pockets of all families and pensioners and help give our economy the jump-start it urgently needs. And the government should use the funds raised from repeating last year's bank bonus to help get young people off the dole and into work, which would also help to get the deficit down."