Tom Clougherty, Executive Director, responds to the latest economic growth figures:
"Some people are bound to blame these disappointing growth figures on the government's deficit reduction plans, but that is plainly wrong. For starters, the spending cuts haven't started to bite yet: spending has actually continued to rise – in real terms – under the coalition government. Slowdowns like this are completely normal after a recession, and historically they have tended to occur quite independently of government fiscal policy.
"Nevertheless, we should take these figures as a stark reminder that we are not out of the woods yet. America's economy looks weak, China has strayed dangerously into bubble territory, and the eurozone's woes look set to continue - so there may be fresh crises around the corner. In light of this, the government needs to press ahead with plans to stabilise our public finances, do more to encourage private sector growth, and urgently come up with a better way of dealing with failed banks."