NO ECONOMIC BRIGHT SPOT IN LABOUR'S GLOOM

2.33.27pm UTC (GMT +0000) Tue 22nd Jul 2003

Commenting on this morning's CBI industrial trends survey, David Laws MP, Liberal Democrat Shadow Chief Secretary to the Treasury, said:

"This shows that not only is the Prime Minister bogged down in the aftermath of the war in Iraq, but the Chancellor is also being battered by persistent bad economic news."

"The economy used to be the one bright spot for the Government in the gloom of their political problems, but today's news suggests that the economy is remaining weak and the government's budget deficit will continue to balloon."

"It's now clear that the Chancellor has failed to tackle the fundamental problems of the British economy, and that he will soon face a choice between higher taxes or less investment in public services."

ENDS

Note to editors

1. Today's survey notes that manufacturers are still continuing to cut capital investment in buildings, plant & machinery.