Government under fire as US exits recession

The VAT cut introduced by the government has proved to be a ’meaningless’ failure, according to the Liberal Democrat shadow chancellor.

Vince Cable made the comment following the release of figures showing that the US economy saw growth of 3.5 per cent in the last quarter.

With data for the UK revealing that the country is still in recession, Mr Cable predicted that Britain will be among the last major developed nations to make a recovery.

And he blamed the prime minister for a bubble in housing and personal debt that led to the situation, adding that action taken in the US is in ’stark contrast’ to the UK.

’The recovery we are now seeing in the US is in [part] down to the positive action the Obama administration has taken to support jobs and build up … infrastructure,’ said Mr Cable.

Meanwhile, shadow chancellor George Osborne criticised the government’s handling of the economy, arguing that new leadership is needed to improve confidence.
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