Euro Mess: Blair Dithers, Brown Has No Plan B For Business

11.56.59am BST (GMT +0100) Wed 21st May 2003

Reacting to the public finance figures and Monetary Policy Committee minutes out this morning, which show a five-four split in the vote on interest rates, Matthew Taylor MP, Liberal Democrat Shadow Chancellor, said that the real costs of dithering on the Euro are making themselves felt.

On the Euro:

"Whatever the Chancellor may conclude on the five euro tests, the MPC minutes reveal the costs of staying outside the euro. "

"If Labour say 'not yet' to the Euro, Gordon Brown must come up with a 'Plan B for Business' or the little investment there is will dry up and business will find it harder to plan for the future."

"On the MPC Minutes:"

"The MPC minutes make it clear that the UK economy is doing far worse than the Chancellor claims, and the collapse in investment is putting his tax and spending plans at risk.

On Public Investment:

"The Government is failing its own public investment test and failing to get money where it's needed. It's not surprising that the railways are in such a mess when public investment is 20% lower than the government planned."

ENDS

Notes to editors

1. This morning's public finance figures showed public sector net investment in 2002-3 at £11.5bn - £700m less than predicted in the 2003 Budget and £2.5bn (18%) less than originally predicted in the 2002 Budget.

2. This morning's MPC minutes showed a five-four split against an interest rate cut this month. Those arguing in favour of a cut noted that the accumulated problems of the overvaluation of the pound might constrain the economy from recovering now that the pound had fallen in value against the euro.