Labour's Opposition Debate got underway in the House of Commons with the party upping the pressure on George Osborne, accusing him of "choking off" any chance of an economic recovery.
Ed Miliband chose to devote his party's opposition day debate in the House of Commons to the economy, as official figures confirmed that youth unemployment had reached record levels.
Unemployment has reached 2.57 million across the UK as the economic downturn, combined with long term trends towards youth unemployment, saw jobless totals rise again.
Speaking ahead of the debate Rachel Reeves, Labour’s newly promoted shadow chief secretary to the Treasury, said the coalition's austerity measures were "reckless".
“With families feeling the squeeze, no growth in our economy since last autumn and unemployment rising again, it’s clear that Britain now faces a real jobs and growth crisis," she said.
“Tax rises and spending cuts that go too far and too fast have crushed confidence and choked off the British recovery well before the eurozone crisis of recent months. Instead of sitting on their hands, it’s time for David Cameron and George Osborne to get a plan for jobs and growth."
She added: “With families feeling the squeeze, more people on the dole and borrowing set to be £46 billion higher than planned, Britain can’t afford to carry on with a reckless Tory plan that is hurting, but not working.”
Labour will say borrowing is forecast to be higher than planned because of the slower growth and higher unemployment arising from the government’s policy of cutting spending and raising taxes "too far and too fast".
The debate comes as European plans to beef up its bailout fund were temporarily scuppered by opposition in the Slovakian parliament.
Slovak MPs voted against increasing the European Financial Stability Fund to 440 billion euros, in a move that also toppled the eastern European's country's government.
The parliament is expected to approve the increase in another vote later this week.