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Economic indicators 'should influence public spending cuts'
Thu 04 Feb 2010
The Liberal Democrats have urged the government to ensure that any future public spending cuts are determined by economic indicators.
According to Treasury spokesman Vince Cable, public spending plans should not be influenced by political dogma.
He said that amid the current economic uncertainty, it is "critical" that the government adopts a flexible strategy so it can adapt to changing circumstances.
Mr Cable was speaking in response to a report from the Institute for Fiscal Studies (IFS), which said implementing tax rises and public spending cuts over the next year could jeopardise the UK's economic recovery.
He said the IFS is right to state that this policy would be "extremely dangerous" given the current weakness of the British economy, which grew by just 0.1 per cent in the last quarter.
Mr Cable added that he is not surprised to see shadow chancellor George Osborne and the Conservative Party trying to "play down their desire" to press ahead with significant public spending cuts.