Slashing spending now would damage the economy (Wantage and Didcot Liberal Democrats)

Wantage and Didcot Liberal Democrats <info@wantagelibdems.org.uk>

Slashing spending now would damage the economy

February 21, 2010 10:38 AM

Vince Cable MP, Deputy Leader of the Liberal Democrats

Commenting on the news that the UK's public finances deteriorated further in January, Liberal Democrat Shadow Chancellor Vince Cable MP said: "This is worrying news for the state of the public finances. The weakness of the economy is having an inevitable impact on tax receipts. These figures underline the importance of having a credible plan to tackle the deficit and stimulate growth and jobs to strengthen future tax receipts."

Mr Cable added: "Simply slashing spending now regardless of the economic circumstances is not only a fruitless labour but a damaging one. If we cut too soon, the economy will be pushed back into recession, lowering tax revenues even further and negating the effect of the cuts. Only the Liberal Democrats have a clear and concise plan for dealing with the deficit and for promoting the long-term growth and security of our economy."

Commenting on this week's unemployment figures, Liberal Democrat Shadow Work and Pensions Secretary Steve Webb MP said: "Record numbers of people out of work for more than a year is the Government's dreaded landmark. These people will be the hardest to help back into work when the economy recovers and risk never coming off benefits. Ministers need to help people far sooner rather than leaving them without specialist support for over a year. These figures show why cutting spending while the economy remains fragile would be a big mistake. We need to invest in a green jobs package which will support the economy now and build our infrastructure for the long-term."