Denton and Reddish Labour MP Andrew Gwynne has forced an admission of economic failure from Business Secretary Vince Cable. The Lib Dem Cabinet Minister was responding to Mr Gwynne’s intervention in the Budget debate in the House of Commons.
Cable has joined Lib Dem leader Nick Clegg in admitting the Government was wrong to cut capital spending, admitting that the Government was wrong to cut capital spending in the 2010 emergency budget when the economy was growing again. These cuts snuffed out any growth and plunged us into a double dip recession.
The admission comes as pressure grows on the Chancellor over his failure to develop consistent economic growth, with many questioning whether his strategy of deep cuts is working.
Cable said in response to Mr Gwynne’s intervention:
“It is true that aspects of Government spending have been cut in a way that has been damaging. The Chancellor has acknowledged, as I have, that capital spending cuts were a mistake.”
Commenting on the extraordinary admission, Andrew Gwynne MP said:
“I am glad that the Business Secretary agrees with me that his Government’s economic strategy is damaging and foolish, but it is a shame that he continues to fail to speak up for common sense in the Cabinet. Swift cuts are not what the economy needs; we need to get the economy on a stable footing from which it can grow.
“Instead of more of the same failing policies, we need a bold and radical Budget to kickstart our economy and help millions on low and middle incomes struggling with the rising cost of living.
“Our economy is flatlining, prices are rising faster than wages, the national debt is shooting up and even our triple-A credit rating has been lost. On every economic test this Government set itself, it has failed. It’s no wonder the Cabinet are losing confidence in the Prime Minister and his downgraded Chancellor and Vince has joined those openly calling for a change of direction.”