Osborne 2009: QE is last resort of desperate governments

George Osborne is set to face tough questions today about the coalition government's economic strategy after the Bank of England expanded quantitative easing by £75bn, a move he has previously called "the last resort of desperate governments".

The Bank today increased its QE programme by a shock £75bn in a bid to kick-start the UK’s ailing economy. Previously only £50bn had been discussed as a possible rise. It is the first time the Bank has issued QE under the coalition government. The first round - which pumped £200bn into the economy - happened under Labour. ln 2009 Osborne, then shadow Chancellor, slammed Labour Chancellor Alistair Darling's emergency plan to print more money. Osborne said at the time: "The very fact the Treasury is speculating about printing money shows Gordon Brown has led Britain to the brink of b...