Angela Eagle MP, Labour’s Shadow Chief Secretary to the Treasury, said in response to President Obama’s comments this afternoon:
“President Obama is right to say that, after the global financial crisis, countries need to get their deficits down and get on a path to sustainable growth. The President rightly noted that there are differences over the sequencing and pace of deficit reduction and if certain policies aren’t working they should be looked at again.
“The US has chosen a different course to David Cameron and George Osborne, holding off from deep cuts until their recovery is secured. The approach the US has taken so far has ensured that they have growth so they can seek to bring their deficit down in a steady way. As the President said, generating revenue - as well as cutting spending - is a vital part of a balanced deficit reduction plan and that means putting jobs and growth first.
“While David Cameron will be disappointed that President Obama refused to endorse his economic policy, he should not be too surprised. After all, no other major economy is cutting as far and fast as the UK and we’ve seen figures today which show how that policy has choked off the British recovery.”