British Deputy Prime Minister Nick Clegg said on Thursday that data showing Britain's economy shrank more than expected in the first quarter underlined the need to accelerate efforts to free up investment and credit.
Speaking between meetings in Berlin about the eurozone troubles, he said:
The revision of the growth figures for the first quarter was very disappointing. I think it is the moment to really shift up a gear to ensure that, as we maintain market confidence in our plan to balance the books and rid the UK of its structural deficit, we do more to ... act as a guarantee to mobilise more investment in infrastructure and housing and get more credit to the real economy. There is clearly a demand issue in the economy.
New figures show that the UK economy is shrinking quicker than expected with the construction industry bearing the brunt of the slump
Figures from the Bank of England reveal a large gap between the British economy today, and where it might have been minus the credit crunch.
There are a lot of disappointing statistics for the Government today including, poor GDP figures, re-offending rates up and high migration.