INTEREST RATE CUT: NEW REGIME TAKES MANUFACTURING RECESSION TO HEART

12.00.00am UTC (GMT +0000) Thu 10th Jul 2003

Responding the Bank of England's decision to cut interest rates by 0.25%, David Laws MP, Liberal Democrat Shadow Chief Secretary to the Treasury, said:

"The new regime of Mervyn King has taken the problems in manufacturing to heart, and cut will raise spirits in the recession hit sectors of the economy."

"This shows the continuing problems facing the British economy, which are not due to world problems alone, but have been made in Britain by Gordon Brown's mistakes."

"The cut in interest rates merely serves to highlight that all is not as well for the British economy as the Gordon Brown likes to pretend."

"Britain's record on manufacturing output, investment and productivity compares extremely badly with all of our competitors both inside and outside the Eurozone."