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| Chancellor welcomes 0.3% economic growth, but Lib Dems are cautious | Chancellor welcomes 0.3% economic growth, but Lib Dems are cautious |
| (35 minutes later) | |
| Senior members of government have welcomed the news that Britain has avoided a triple-dip recession but the Conservatives' coalition partners warned that the economy has a long way to go as Labour highlighted the slow pace of growth. | Senior members of government have welcomed the news that Britain has avoided a triple-dip recession but the Conservatives' coalition partners warned that the economy has a long way to go as Labour highlighted the slow pace of growth. |
| The chancellor, George Osborne, said the figures showing the economy had expanded by a stronger-than-expected 0.3% in the first quarter of 2013 were "an encouraging sign the economy is healing". | The chancellor, George Osborne, said the figures showing the economy had expanded by a stronger-than-expected 0.3% in the first quarter of 2013 were "an encouraging sign the economy is healing". |
| He said: "I can't promise the road ahead will always be smooth, but by continuing to confront our problems head on Britain is recovering and we are building an economy fit for the future." | He said: "I can't promise the road ahead will always be smooth, but by continuing to confront our problems head on Britain is recovering and we are building an economy fit for the future." |
| The deputy prime minister, Nick Clegg, said the figures were better than many anticipated but warned: "I don't want anyone to think that somehow we are out of the woods yet. We have still got a lot of work to do. The healing of the British economy is taking longer than we had anticipated and we will continue to work hard to make sure the country and the economy grow from strength to strength." | The deputy prime minister, Nick Clegg, said the figures were better than many anticipated but warned: "I don't want anyone to think that somehow we are out of the woods yet. We have still got a lot of work to do. The healing of the British economy is taking longer than we had anticipated and we will continue to work hard to make sure the country and the economy grow from strength to strength." |
| The business secretary, Vince Cable, called the growth "modestly encouraging" and another sign that things were going in the right direction. "However, there is still a long way to go and some serious issues such as the systemic lack of bank lending to SMEs [small and medium-sized enterprises], the weakness in the construction sector and the need to press further on trade and exports, which I am doing now on my visit to Brazil," he said. "These issues all need to be addressed before people feel like the economy is genuinely starting to recover." | The business secretary, Vince Cable, called the growth "modestly encouraging" and another sign that things were going in the right direction. "However, there is still a long way to go and some serious issues such as the systemic lack of bank lending to SMEs [small and medium-sized enterprises], the weakness in the construction sector and the need to press further on trade and exports, which I am doing now on my visit to Brazil," he said. "These issues all need to be addressed before people feel like the economy is genuinely starting to recover." |
| Labour attacked the figures as further proof that a change in approach was needed. The shadow chancellor, Ed Balls, described them as "lacklustre" and said Osborne and David Cameron were presiding over for the slowest recovery for more than 100 years. | Labour attacked the figures as further proof that a change in approach was needed. The shadow chancellor, Ed Balls, described them as "lacklustre" and said Osborne and David Cameron were presiding over for the slowest recovery for more than 100 years. |
| "This stagnation in our economy is the reason why people are worse off than when this government came to office. They took an economy that was starting to grow strongly, with falling unemployment and a falling deficit, and delivered stagnation, rising unemployment and £245bn more borrowing than planned," he said. | "This stagnation in our economy is the reason why people are worse off than when this government came to office. They took an economy that was starting to grow strongly, with falling unemployment and a falling deficit, and delivered stagnation, rising unemployment and £245bn more borrowing than planned," he said. |
| Balls suggested his own medicine for the economy, which included bank reform, building thousands of affordable homes, a compulsory jobs guarantee for the long-term unemployed and a 10p starting rate of income tax. | |
| The Labour MP John Mann, a member of the House of Commons Treasury committee, said the economy was stuck in a rut similar to that which afflicted Japan. | The Labour MP John Mann, a member of the House of Commons Treasury committee, said the economy was stuck in a rut similar to that which afflicted Japan. |
| He told BBC News: "In Japan, their economy stagnated – sometimes it went down to below zero, sometimes just above it, but it kept on this very low-growth trend and kept there for 15 years and it's been a disaster for Japan. | He told BBC News: "In Japan, their economy stagnated – sometimes it went down to below zero, sometimes just above it, but it kept on this very low-growth trend and kept there for 15 years and it's been a disaster for Japan. |
| "We are in the same cycle and breaking out of it will need a change of policy." | "We are in the same cycle and breaking out of it will need a change of policy." |