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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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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