Conservatives out of their Depth on the Economy

9.14.48am GMT Thu 25th Feb 2010

"The man who was right on the economy" - Lib Dem Shadow Chancellor, Vince Cable

Commenting on George Osborne's widely reported recent lecture, Lib Dem Treasury Spokesman, Vince Cable has pointed to Mr Osborne's lack of understanding of the economy. Mr Cable who was formerly chief economist at Shell, is widely respected for having forecast the banking crisis.

Commenting on George Osborne's Mais Lecture, Vince Cable said:

"Osborne's latest economic commentary shows just how out his depth he is when it comes to the important economic issues.

"Slashing spending now could push the economy back into recession and inflict further structural damage on the UK that will make it harder to sustain our credit rating.

"He is at odds with his leader on when cuts should come and fails to appreciate that what the markets are looking for is a credible plan to reduce the deficit, not a willingness to slash regardless of economic conditions.

"In the current climate it is essential that decisions about the speed and timing of tackling the deficit are based on the state of the economy, not political dogma."

Speaking locally Lib Dem spokesman Julian Tisi said, "nationally George Osborne has called for massive cuts right away and an end to borrowing, however locally the Conservative run council is borrowing money to help fund a modest propaganda cut to council tax, that can only mean higher council tax in the long run."