Tories didn't take economic reality into account says Cable

9.00.00am GMT Fri 29th Jan 2010

Vince Cable

"A lasting and sustainable recovery can only be achieved if we correct these fundamental imbalances," said the Liberal Democrat Shadow Chancellor.

Responding to David Cameron's comments on public spending at the World Economic Forum in Davos, Vince Cable said "The Tories' confused statements about cuts show that they don't really know what to do about the economy. In their desperation to sound tough on public spending, the Tories didn't take economic reality into account. It is of course necessary to cut public spending but this must be done calmly and rationally when the economy is strong enough to cope with it. The economy remains dependent on artificial money creation and a Government running a massive deficit, but with growth of just 0.1%, immediately slashing government spending would be disastrous. Our economy is too reliant on consumer spending and debt and a failing financial services industry. A lasting and sustainable recovery can only be achieved if we correct these fundamental imbalances."