Cutting too soon will aggravate unemployment says Cable

8.40.00pm GMT Mon 15th Mar 2010

Responding to the Bank of England’s latest quarterly bulletin and its warnings of job market uncertainty, Vince Cable said:

“This is strong confirmation from the Bank of England that the British economy is still weak.

“Although unemployment is not as bad as it could have been given the extent of the economic collapse, there is still worrying uncertainty.

“The clear implication of the Bank’s analysis is that if any Government tries to cut back too soon, it will aggravate unemployment, making the deficit worse and compounding the country’s problems.

“Each party must set out a clear process of what and how it will cut to tackle the deficit, but when this starts must be guided by economics, not political dogma.”