The news that the UK’s public finances deteriorated further in January coupled with the 30% plus drop in retail sales show how fragile the economy still is. 

This is also worrying news for the state of the public finances. Our weak economy, with increased bankrupcies and insolvencies will undoubtedly be having a dramatic impact on tax receipts. 

If nothing else these figures underline the importance of having a credible plan to tackle the deficit and stimulate growth and jobs to strengthen future tax receipts. 

The current fragile situation combined with the announced support of 60 leading economists today add increased weight to the Lib Dem view that simply slashing spending now regardless of the economic circumstances would not only a be a fruitless labour but a damaging one. 

If we cut too soon, the economy will be pushed back into recession, lowering tax revenues even further and negating the effect of the cuts. 

Only the Liberal Democrats have a clear and concise plan for dealing with the deficit and for promoting the long-term growth and security of our economy.”