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Labour criticised as US economy emerges from recession
Published 30 October 2009
Brown's claim that UK is "best placed" lies "in tatters", says Osborne
Labour's economic policies have come under attack after the United States became the latest major economy to emerge from the recession.
The UK is still in recession after six straight quarters of falling output but official data released on Thursday showed the US economy grew at an annual pace of 3.5 per cent in the third quarter of this year.
The shadow chancellor, George Osborne, said the US recovery left Gordon Brown's claim that the UK was "best placed" to weather the downturn "in tatters".
But the chief secretary to the Treasury, Liam Byrne, insisted the government's policies were working and added that Osborne had made a "complete clown of himself".
He said: "[Osborne] says that the US would have recovered without a stimulus - just as the President's top economic advisers said the stimulus was vital.
"America's GDP figures are good news for America and good news for Britain. The growth in demand from an important trading partner will have a beneficial effect on our economy.
"The US GDP figures today show one thing above all - that economic stimulus has worked.
"Given the choice between Gordon Brown and Barack Obama on one hand, and George Osborne on the other, I know which side I'd pick."
Vince Cable, the Liberal Democrat Treasury spokesman, said the US recovery was in "stark contrast" to the UK.
"The UK is now one of the last major developed countries still in recession.
"We are now paying the price for a massive over-reliance on the banking sector and a bubble in housing and personal debt which went unchecked by the Prime Minister for years.
"The recovery we are now seeing in the US is in a good part be down to the positive action the Obama administration has taken to support jobs and build up the country's infrastructure.
"The return to growth in the US is in stark contrast to the UK and is clear evidence that the billions poured into a meaningless VAT cut has failed."
Brown remains hopeful that a mixture of low interest rates, higher spending and quantitative easing will lead to an economic recovery by the end of the year.
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