'Don't pull rug from under recovery' call

In his weekly podcast on the No 10 website, the Prime Minister said that while official figures this week had shown the UK was finally out of recession, the overall world economic situation remained weak.

He said that it was essential that Government support measures put in place following the credit crunch continued until growth picked up.

“Return to strong, sustainable global growth is still some way off. So I can reassure you that we are not about to jeopardise Britain’s economic future by suddenly pulling the rug from under the recovery,” he said.

“We will continue with the measures we have put in place that are supporting families and businesses and we will continue to invest willingly and whole-heartedly in this country’s future – and I will make no excuse for that.

“Only with this radical approach and a plan for prosperity for all can we deliver renewed growth, jobs and opportunities for all.”

His comments echoed Chancellor Alistair Darling who said that there was still a danger that the economy could “tip back” into recession if the Government tried to tackle the deficit before growth was securely established.

“Once you get through to that, once you get recovery, then of course you have got to get your borrowing down,” he said.

“Pull that support prematurely, the Tory prescription if you like, and you run the risk that you will actually tip things back, which is why I attach so much importance to getting our economy back to recovery.”

Mr Darling said he believed that he had struck the right balance and he accused the Conservatives of “running away” from earlier pledges to tackle the deficit more quickly as they realised the dangers.