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Cameron 'complacent' on economy, says Miliband

Joe Churcher,Pa
Wednesday 27 April 2011 12:50 BST
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Figures showing the economy is growing again are "good news", David Cameron said today - sparking Labour complaints of "extraordinary complacency".

While the UK dodged a double-dip recession, the Office for National Statistics said underlying growth was broadly flat and the economy has made no progress since the third quarter of 2010.

The performance was dragged down by a lacklustre construction sector, which industry experts said was suffering due to low confidence in the economic outlook.

Tackled by a Tory MP over the poor construction figures, Mr Cameron conceded they were "disappointing" but told the Commons: "What is encouraging in the figures is that the British economy is growing once again, manufacturing is up, exports are up, and we are seeing a rebalancing of the economy so we are not over-reliant on private consumption.

"That is good news."

Labour leader Ed Miliband said the GDP figures showed the economy had "flatlined over the last six months" and criticised Mr Cameron's response.

"What world are you living in? What extraordinary complacency," he said at question time.

Mr Miliband said that six months after Mr Cameron said the UK was "out of the danger zone", there had been no growth and ridiculed claims by Chancellor George Osborne that the economy was "on track".

"It is not even forecast to meet the figures published by the Office of Budget Responsibility last month," he said.

"It is your cuts that are too far and too fast that are squeezing living standards, undermining consumer confidence and holding back growth."

The Prime Minister accused the Opposition leader of being "desperate" for a double-dip recession and "talking the economy down".

Conservative Brian Binley asked the Premier if he saw a link between the construction slump and falling bank lending - "and if so, what will you do about it?".

"What is happening in the construction industry is disappointing. We do need to get Britain building again," Mr Cameron said - pointing to a scheme to encourage new homes.

The Government had an agreement with the banks to boost lending, he said. "That needs to happen."

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