Philip Hammond has admitted there will be "setbacks" in Britain's economic recovery, in response to reports in the Sunday Times that the UK's economy could have shrunk by 0.2% in three months.
Asked to comment on reports ahead of GDP figures for the second quarter of 2011, The Transport Secretary said he hoped "we've put the era of boom and bust bubbles behind us".
"We've always said that the recovery from what was the longest and deepest recession in our post war history was going to be choppy. It's not a question of looking at one month or one quarter it's a question of building a firm foundation of fiscal discipline and sound public finances on which investment can take place, jobs can be created and we can eventually get Britain back on track for sustainable prosperity in the future", he told Sky News.
"We've put the era of boom and bust bubbles behind us, I hope. We are now looking to build a solid foundation for the future. That's going to be a tough call and over the next months and maybe even the next year or so it's going to be a very tough road, and there will be some choppiness. So we will see some setbacks as well as some progress during that period, I'm sure."