Clegg blames lack of investment for GDP fall

Figures out today from the Office for National Statistic show UK GDP fell by 0.3% in the final quarter of 2012, fuelling fears the country could re-enter recession.

The UK was in recession for the first half of 2012, but saw GDP grow by 0.9% in the third quarter, partly fuelled by the London Olympics.

Today's figures paint a depressing picture for the UK government, which was criticised for cutting too harshly by the IMF's chief economist Olivier Blanchard.

Clegg said the government may have cut its commitments to capital investment and infrastructure too harshly, leading to stagnation in the economy.

However, chancellor George Osborne rebuffed yesterday's comments by Blanchard, saying the government plans to continue with its austerity programme.

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