Chancellor George Osborne was urged to tear up his economic policy by a Birmingham MP, following the publication of yet more bad news about the state of the economy.
Steve McCabe (Lab Selly Oak) said: “While they are telling us to wait it out, thousands of families across my constituency are being pinched by the rise in the cost of living and the failure of the economy to grow in nine months.”
The number of homeowners putting their property up for sale fell last month as fears of a double-dip recession knocked confidence, new figures showed.
And the Royal Institution of Chartered Surveyors report revealed that property prices are falling in the West Midlands and every other part of the country except for London.
Meanwhile, the British Retail Consortium reported that clothes shops suffered their biggest sales drop in two years as demand wilted in the UK’s mini heatwave, the British Retail Consortium (BRC) said.
Total high street sales were up by 0.3 per cent, thanks partly to demand for food for summer barbecues.
Helen Dickinson, head of retail at accountant KPMG, which helps compile the survey, said: “As we are entering the crucial season in the run-up to Christmas, the outlook may be described as ‘hopeful’ but that’s as good as it gets.”
Meanwhile, the Chartered Institute of Personnel and Development warned that the number of jobs lost as a result of government spending cuts was likely to be 50 per cent higher than forecast.
The number of jobs lost in the public sector was likely to be 610,000, the institute said.
Mr McCabe said: “These figures demonstrate the need for the Government to re-think their economic policy.
“The Government needs to cut slower and less severely – only then will we see the growth that we need to help hard working families across Birmingham.”