One of Gordon Brown’s most trusted ministers was under fire last night after saying that she could see a few “green shoots” of economic recovery.

Baroness Vadera, a colleague of Lord Mandelson in the Business Department, said it was too early to say how they would develop and made clear that she was not predicting the end of the current downturn. But Alan Duncan, the Shadow Business Secretary, said that her use of the “green shoots” phrase proved that ministers were out of touch.

The claim by Norman Lamont, the former Chancellor, to have detected “the green shoots of economic spring appearing once again” at the Tory conference in 1991 was regarded widely as premature and he was given a rough ride by critics.

Eighteen years on, Lady Vadera, who worked as an adviser to Mr Brown before entering the Government, gave the Tories their chance of revenge. She was asked on the ITV Lunchtime News yesterday when she believed that the UK could expect to see “green shoots” and replied: “I am seeing a few green shoots, but it’s a little bit too early to say exactly how they’d grow.”

Downing Street defended her, saying that some companies were “expanding their workforces”.

Lady Vadera’s comments came as Barclays announced that it was to cut 2,100 UK jobs, Jaguar Land Rover said it was losing 450 staff and administrators of the music chain Zavvi announced that it would close a further 18 stores, with the loss of 353 jobs.

Mr Duncan said: “Shriti Vadera’s comments go to show how out of touch and insensitive Gordon Brown’s ministers are.”

Vince Cable, the Liberal Democrat Treasury spokesman, said: “Baroness Vadera is clearly living in a parallel universe if she thinks the economy is beginning to recover.”

Sources suggested that Lady Vadera was referring to the fact that the bond market had begun to open up for bigger borrowers and to good news on jobs from Morrisons and Tesco.

Lady Vadera was said by friends to regret using the phrase and the row it caused. “The phrase was not in her head. It was put to her and in the heat of the moment she used it. She very much wishes she had not,” they say.

Lord Mandelson, the Business Secretary, said critics were making a mountain out of a molehill. He said her comments were “a very far cry from a set piece, strategic speech made to the Tory party conference by Norman Lamont all those years ago”.

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