Press Story

IPPR Chief Economist, Tony Dolphin, said:

"Today's GDP figures not only confirm that the UK economy is back in recession, they show that this recession is deeper than previously thought.

"Construction is weaker because of the slump in house building and the decline of public sector capital.

"Earlier this week the IMF said that the UK authorities should to take action to support growth 'if downside risks materialize and the recovery fails to take off'. No more evidence should be needed that the recovery is failing to take off.

"The Monetary Policy Committee should authorise an increase in the scale of quantitative easing at its next monthly meeting and the Chancellor should ease fiscal policy through a temporary cut in national insurance contributions and a boost to infrastructure spending.

"It is too late for contingency planning; it is time for action."

Notes to Editors:

Today's figures are at: http://ons.gov.uk/ons/rel/naa2/second-estimate-of-gdp/q1-2012/index.html

IPPR's Plan B - 'Deficit Reduction Averaging' - is available from: http://www.ippr.org.uk/publicationsandreports/publication.asp?id=809

Contacts

Richard Darlington, 07525 481 602, r.darlington@ippr.org

Tim Finch, 07595 920899, t.finch@ippr.org