Shadow chancellor Ed Balls has called for the government to include a raft of tax cuts in next month's budget.
Mr Balls has made a raft of suggestions which could boost growth in the UK, including a 3p income tax cut for a year, bringing forward the planned personal allowance rise to £10,000 and an increase in tax credits for workers.
The Labour MP also claimed a cut to VAT, which was raised to 20 per cent by the coalition, would be "fairer and quicker" but doubted whether David Cameron would admit to making his "mistake" by reducing VAT to its previous rate.
Writing in the Sunday Times, Mr Balls said: "Some people may be surprised to see Labour prioritising tax cuts. But in a crisis there is a premium on what works effectively and quickly to get our economy moving."
Mr Balls added that the lack of tax cuts could result in a decade of "slow growth and high unemployment" and permanently dent the UK's prosperity.
Chancellor George Osborne is due to announce the budget on March 21st.