Sudden cuts could plunge the economy into a prolonged recession
January 15, 2010 9:55 AM
"There's a big risk that if cuts begin suddenly and on a purely political basis that the economy will be plunged back into prolonged recession" said Vince Cable, Liberal Democrat Shadow Chancellor responding to George Osborne's admission that the Conservatives would begin to cut spending immediately after the General Election if they won.
"Nobody doubts that serious budget discipline will be required in the coming years in order for Britain to maintain its credit worthiness, but it's foolish to set a political timetable with no regard for the state of the economy.
"There's a big risk that if cuts begin suddenly and on a purely political basis that the economy will be plunged back into prolonged recession.
"What is needed is a set of clear economic tests, which include the growth of the economy and employment, as well as conditions in international markets, to judge when contraction of spending should begin or be accelerated."
