Labour: How much more evidence do we need for plan B?

Labour MP Rachel Reeves said today's inflation report by the Bank of England which slashed growth predictions from 0.8% to 0% showed the government must accept their plan 'A' to cut the deficit and stimulate growth is not working. She said:

"The economy has now shrunk over the last two and a bit years, since the coalition came to power, unemployment is higher since the coalition came to power and the deficit has actually increased."


Britain growth forecast zero

The Governor of the Bank of England Sir Mervyn King says the economy has reached a point where it is virtually flatlining. He downgraded his growth forecast for this year to around zero. Britain's economy, in other words, is grinding to a halt.