The UK economy is weak and will remain so for "some time to come".
This is the view of Liberal Democrat treasury spokesman Vince Cable, who said "sluggish growth and comparatively high inflation are a serious concern".
Mr Cable’s comments follow the publication of the Bank of England’s latest quarterly inflation report, which revealed that inflation has risen sharply to 2.9 per cent.
Commenting on proposals to cut back on public spending, Mr Cable said: "With growth still weak it would be a foolish error to slash spending now and risk pushing the economy back into recession."
He added: "In this climate it is essential that decisions about the speed and timing of tackling the deficit are based on the state of the economy, not political dogma."
Fears of a double dip recession could lead a number of homeowners looking to ensure their financial stability by realising the potential of the value of their assets.
Schemes such as equity release can allow for cash to be drawn against the value of a person’s property.
