Rachel Reeves MP, Labour’s Shadow Chief Secretary to the Treasury, said in response to the CBI’s November 2011 Economic Forecast and today’s UK trade figures:
 
“These forecasts are worrying for families feeling the squeeze, businesses on the edge and young people out of work. They should spur the Chancellor to take urgent action to get our economy moving in his autumn statement. 
 
“What is happening in Italy and the eurozone will clearly have an impact on our economy, but out of touch Ministers need to understand that our recovery was choked off a year ago well before the crisis of recent months.
 
“Today's trade figures are disappointing but they nevertheless show that exports to the eurozone in the last quarter are 17 per cent higher than the same period a year ago. Our economy has now flatlined for a year because domestic demand has fallen and confidence slumped as spending cuts and tax rises that go too far and too fast have kicked in. The government's reckless policies over the last year have left us badly exposed as the eurozone crisis deepens as eurozone leaders and the European Central Bank fail to take the necessary action. 
 
“We agree with the CBI that urgent measures are needed to boost economic growth. Bringing forward infrastructure projects and giving tax breaks to businesses to encourage them to take on young workers are similar ideas to those in Labour’s five point plan for jobs. But we would go further and boost demand by temporarily cutting VAT and using a tax on bank bonuses to guarantee 100,000 jobs for young people.
 
“David Cameron and George Osborne need to realise that we need strong growth and more people in work if we’re to get the deficit down. The government is already set to borrow £46 billion more than they planned because of slower growth and higher unemployment and that figure looks set to rise in the Chancellor’s autumn statement.”