Top economist attacks Tory austerity – and Labour's limp response

Nobel prize-winner Paul Krugman says both parties are 'in effect promising a new round of austerity that might well hold back a recovery' after election

Plans by the Conservatives and Labour for a fresh round of deficit reduction after the general election are being strongly attacked by one of the world's leading economists who warns that renewed austerity will hold back a still-incomplete recovery.

Paul Krugman, a Nobel prize-winning US economist, challenges David Cameron's claim to have rescued the economy by stressing that growth only resumed halfway through the 2010-15 parliament once the coalition abandoned its plan to repair the public finances within five years.

Related: GDP figures: a blow for Osborne's growth and austerity mantra