Economy Becoming a Major Headache For Brown

5.01.51pm BST (GMT +0100) Wed 23rd Jul 2003

David Laws MP, Liberal Democrat Shadow Chief Secretary to the Treasury

Commenting on the publication of the minutes of the Monetary Policy Committee today, showing an 8-1 vote in favour of a rate cut, David Laws MP, Liberal Democrat Shadow Chief Secretary to the Treasury, said:

"The majority of MPC members are worried about an economic slowdown. This can no longer be passed off as simply being a global problem. It is a British problem as well."

"There is a serious concern that the UK economy has only been growing on the back of buoyant consumer spending and higher household debt."

"The UK economy now has a major headache, and Gordon Brown's optimistic forecasts are no cure."

ENDS

Notes to editors

1. Today's vote was 8-1 in favour of a cut, compared to 6-3 last month - meaning that five MPC members changed their minds over the month.

2. Todays' minutes noted that 'a particular cause of concern for some members was that the rate of growth of secured and unsecured borrowing was unsustainably high' and that UK GDP growth for Q1 had been revised down and for Q2 'might also be slightly weaker than expected in May'.