Ed Balls has called for emergency tax cuts in next week's Budget, saying Labour would welcome a cut in the basic rate of income tax to boost the economy.
Chancellor George Osborne is under pressure from some Conservative MPs to make bold tax moves on Wednesday in a bid to kick-start the UK's fiscal fortunes.
In an interview with The Daily Telegraph, Mr Balls said temporary borrowing to fund a cut in the basic rate of income tax would pay for itself.
"Something must be done now" as Britain is facing an economic depression "like the 1930s", the shadow chancellor told the newspaper.
"If George Osborne announced a temporary cut in the basic rate we would applaud him because we would say, 'At last he is finally doing something to get some spending power back into the economy'", he added.
A round up of the press' reaction to George Osborne's Budget 2013.
The borrowing figures announced by the Chancellor today were as bad, if not worse, than expected.
Conservative sources in the coalition said there will be no more welfare savings in the 2015/16 spending round.