GDP Figures Show Chancellor's Problems Increasing - Cable

12.58.07pm BST (GMT +0100) Fri 21st Oct 2005

Commenting on the estimate of Q3 GDP growth contained in the Quarterly National Accounts of GDP released today by the Office of National Statistics, Liberal Democrat Shadow Chancellor, Vince Cable MP said: "These figures show Gordon Brown's problems are increasing.

"This first estimate makes it increasingly difficult to believe that GDP growth this year will even meet Gordon Brown's revised forecasts of 2.5%.

"The Chancellor has unwisely and unnecessarily staked his reputation on the forecasting ability of the Treasury which is largely a matter of pure chance.

"The current weakness is not primarily due to high oil prices, as the Chancellor would have us believe but to domestic imbalances that Gordon Brown has done little to address.

"The fall in private consumption, which was evident when the Chancellor made his growth forecasts in the Budget, is largely due to uncertainty in the housing market and concerns over personal debt."