TRIPLE DIP RECESSION

That this House notes that economists at the World Economic Forum meeting at Davos are warning that the advanced industrialised world is facing a disastrous triple dip recession; further notes that the Chief Economist of the International Monetary Fund, Olivier Blanchard, warned the British Government that economic conditions in Britain have worsened, with the IMF cutting its growth forecast to just one per cent this year; further notes that Mr Blanchard has urged the Chancellor to reassess fiscal policy; believes that the Government needs to act urgently to stimulate the economy; further believes that swingeing cuts in public spending are going to impact very strongly and adversely over the next year particularly on the poor and the most vulnerable but also on many middle income earners; further believes that these cuts will be entirely counter-productive; and therefore urges the Government to abandon its current disastrous economic policies and to adopt a counter-cyclical reflationary package of public spending and investment.