Angela Eagle MP, Labour's Shadow Chief Secretary to the Treasury, said:
"It's not just political difficulty Ken Clarke should be worried about, but economic difficulty too.
"The Tory-led government may have boasted before Christmas that Britain was recovering and out of the danger zone, but their decisions have meant the economy has now stalled and both unemployment and inflation are rising.
"And this is before the full impact of the VAT hike and deep spending cuts have been felt.
"Ken Clarke should come clean that his government made a political choice to reduce the deficit in this way. No other major economy is cutting this far and this fast.
"It's time for David Cameron and George Osborne to wake up and realise their plan isn't working. They need a plan B that puts jobs and growth first and they need it quick."