Danger of double dip recession remains, says Cable

The British economy could still experience a double dip recession, it has been claimed, which could be bad news for those with debt concerns.

Vince Cable, the Liberal Democrat shadow chancellor, was speaking in response to recent gross domestic product figures that showed 0.2 per cent economic growth between January and March this year.

Mr Cable said these statistics show there is “a real danger” that the UK could slide back into recession.

He explained: “As people deal with their own debts and as the banks continue to strangle good British businesses by starving them of credit, the recovery will remain fragile.”

The deficit must be approached in a rational and considered fashion and jobs and infrastructure have to be supported, he added.

Mr Cable recently noted that the economy remains unstable at present, following a report from the Office for National Statistics that revealed unemployment numbers in the UK to have risen in recent months.

By Joe Shervin