Ed Balls: UK economy is on the wrong path

The Shadow Chancellor, Ed Balls, has urged the government to make a temporary cut in VAT to stimulate the economic recovery.

Speaking at the London School of Economics, Mr Balls argued that the move will boost consumer spending, create jobs and be a better way to get the deficit down long term.

He went on to say that the UK economy is currently on the wrong path and that it is a path of "slower growth and higher unemployment".