The Shadow Chancellor Ed Balls has accused the Prime Minister and Chancellor of complacency and called for "direct help to struggling families and businesses".
Reacting to today's announcement of GDP figures, Mr Balls said: "These deeply disappointing figures expose just how dangerously complacent the Prime Minister was when he said last autumn that the ‘good news will keep coming’."
“This government’s failing plan has now seen our economy stagnate for over two years and borrowing is now rising as a result."
“It is grossly irresponsible and out of touch of George Osborne to once again try to shrug off bad news and refuse to heed the advice now coming to him from right, left and centre," he added.
Business leaders at the World Economic Forum cautioned against complacency amid optimism that the eurozone is emerging from its crisis.
The Chancellor blames GDP figures on the crisis he inherited, and troubles abroad. As criticism mounts, his position becomes more difficult.
Unusually frank words for the government from one of the City's top economists on today's dismal GDP figures.