Labour says government cuts are causing "permanent damage"

Labour says the Bank of England's gloomy forecast for UK growth reflects the "permanent damage" to the economy caused by government policies.

The Bank, which in May predicted growth of 0.8 percent, now says growth will be close to zero.

The Shadow Chief Secretary to the Treasury, Rachel Reeves, told the BBC News Channel that people were struggling to make ends meet because spending had been cut too deeply and too fast.

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