Ed Balls, Labour’s Shadow Chancellor, said in response to a speech by the outgoing director general of the CBI Sir Richard Lambert:
“These are damning criticisms from such a respected figure in the business world.
“As Sir Richard says, the Conservative-led government has no plan for growth and has taken decisions for political reasons regardless of the consequences for job creation and business.
“He is also right to warn that cuts which go so far that they kill demand would actually make matters worse.
“The fact is George Osborne is just keeping his fingers crossed and hoping for the best, while unleashing a reckless gamble on the economy.
“It’s time Ministers heeded these warnings from respected figures before it’s too late.”
John Denham MP, Labour’s Shadow Business Secretary, said:
“It is not just Labour that says the Tory-led Government has failed to take the action needed to support, business, growth and jobs - its the voice of business, the CBI.
“As Richard Lambert has said today the Government has offered no vision and direction for the economy, it has failed to produce the Growth White Paper, hasn’t got bank lending going to small businesses, and made a mess of replacing RDAs with ineffective and chaotic local economic partnerships.
“And with the CBI saying the Business Department should be less of a talking shop and more a champion of growth, Business Secretary Vince Cable’s credibility is once again called into question.”