He said: “What I worry about is that people are losing confidence, losing energy, losing enthusiasm, and there’s a real opportunity to get them into work.
“George Osborne and the Coalition embarked on the right....I’d like to see a bit more supply-side stuff; I’m sure the Government would love to do it, to get on with allowing businesses to take on staff more easily.
“But I would like to see it, no doubt about it. I would like to see a very aggressive campaign for more investment in infrastructure.”
The news came as former Prime Minister Tony Blair admitted that he had to “bear a certain responsibility” for the size of Britain’s budget deficit.
He told the Murnaghan programme on Sky News: "Everybody who was in power in that period bears a certain responsibility.”
The economy is set to dominate again this week with the publication on Wednesday's of Britain's GDP figures, which will show whether the UK lifted itself out of double-dip recession between April and the end of June.
The International Monetary Fund recently downgraded its forecast for UK growth to just 0.2 per cent in 2012 and 1.4 per cent in 2013.
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