MANSION HOUSE SPEECH: BROWN MUST PROVIDE ANSWERS NOT EVASION

9.41.59pm BST (GMT +0100) Tue 17th Jun 2003

The Chancellor must spell out how he intends to tackle the gap in his growth estimates and the collapse in investment in the annual Mansion House speech tomorrow, Matthew Taylor MP, Liberal Democrat Shadow Chancellor said today.

In his first major engagement since the Euro announcement, Gordon Brown will have to explain to business leaders how they should approach yet another year of uncertainty regarding Britain's economic future. With many of Britain's economic problems now worsening, Gordon Brown will face a sceptical audience. Mr. Taylor said:

"The Chancellor's reputation has taken a severe battering over the last year. Few believe his growth forecasts, and few believe that the Chancellor's reputation for prudence is a sufficient basis for belief in his budget "

"Business leaders recognise that saying no to the Euro requires a 'Plan B' to stem the loss of investment and deal with record trade deficits. But it is not clear that the Chancellor has recognised his responsibilities."

"The British economy now shows the biggest deficit, the lowest growth, and the lowest profitability since the Conservatives left office. The manufacturing recession is even worse than under the Tories and productivity and current account problems as are bad as in 1996."

"The business community will want answers, not evasion in the Chancellor's Mansion House speech."