Worst recession in 50 years

Gross domestic product shrank by 0.7% between April and June, taking Britain into its longest double-dip recession for more than 50 years, official figures have revealed.

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Cable concedes he would 'probably' be a good chancellor

Business Secretary Vince Cable Credit: David Cheskin/PA Wire

The Business Secretary Vince Cable has said that he would "probably" be a good chancellor but stressed that he was not calling for a change in personnel.

He was responding to an earlier call by the Liberal Democrat peer Lord Oakeshott who said he should replace George Osborne, who he back-handedly praised for "doing well as a chancellor on work experience”.

Asked on BBC2's Newsnight whether he would make a good chancellor, he said: "I probably would, but George Osborne is doing the job, we're doing it together, well, as part of a team, and nobody's suggesting we change the arrangements."

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Government stimulus 'will take three years to kick in'

Professor David Blanchflower, a former member of the Bank of England's monetary policy committee and a critic of the Government's austerity policy, has described today's GDP figures as "disastrous".

He told the BBC News Channel that the Government's austerity programme is "nonsense" and that its recent initiatives to stimulate growth will take three years to kick in.

He called on the Government to "give firms incentives to hire and invest today...because otherwise the economy will carry on downwards".

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Cable: GDP figures 'underlines' economic difficulties

Vince Cable GDP figures
Business Secretary Vince Cable. Credit: Anna Gowthorpe/PA Wire

Business Secretary Vince Cable said on today's GDP figures: "Clearly we are dealing with news today which is disappointing and it underlines the very difficult economic conditions under which we are operating."

He also distanced himself from comments by Liberal Democrat ally Lord Oakeshott, saying: "We have a very good team in the Government and the Treasury and I work very harmoniously with them."

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