Shadow Chancellor Ed Balls has warned that slashing public spending too fast could push Britain’s economy into another recession.

Mr. Balls said that that the only Plan B Chancellor George Osborne required was to put an end to the drastic scale of public spending cuts.

He also raised suspicions that the Governor of the Bank of England, Mervyn King, was thinking in his heart of hearts that the economy of the country was not on the right track.

Speaking on the topic, Mr. Balls said, "I do not think that Mervyn King, in his heart of hearts, really believes that crushing the economy in this way is the right way to get the economy moving.”

A few days ago, Mr. King had said that the Government was set on the "right course" and must keep that up.

But, Mr. Balls argued that around three decades ago, when Margaret Thatcher's government was slashing public spending, Mr. King was of the view that the cuts could result into high unemployment.

He added that rising unemployment was indicating that the government was advancing in the wrong direction.

Notwithstanding, George Osborne stressed yesterday that there was no question of receding from the planned programme of public spending cuts.