Vince Cable tells Coalition: Let’s go to Plan A to drag Britain out of economic slump

RSS Feed

Vince Cable tells Coalition: Let’s go to Plan A to drag Britain out of economic slump

June 19th, 2012

FAKE NEWS for the Zionist agenda

By
Jason Groves

PUBLISHED:

19:03 EST, 18 June 2012

|

UPDATED:

20:31 EST, 18 June 2012

Vince Cable yesterday called for the Coalition to move to a ‘Plan A+’ to help drag Britain out of an economic ‘slump’ .

The Liberal Democrat Business Secretary urged ministers to accelerate plans for kick-starting growth, including a multi-billion scheme that could pave the way for the construction of tens of thousands of new homes.

Mr Cable also hinted that the Bank of England should do more to make it clear that interest rates will remain at rock bottom rates until Britain is decisively back on the path to recovery.

Business Secretary Vince Cable urged ministers to accelerate plans for kick-starting growth

In a speech to the Centre Forum think tank, Mr Cable suggested it was time for the Government to move to a ‘Plan A+’ on the economy in response to the double dip recession.

Until now ministers have been reluctant to acknowledge any deviation from the original ‘Plan A’ on the economy, which involved tough measures to slash the huge budget deficit left by Labour.

Downing Street last night insisted there was no shift in policy. A spokesman said: ‘We have one plan and it’s a credible plan.’ But Mr Cable yesterday insisted it was possible to do much more to stimulate growth without jeopardising the deficit reduction plan.

He said a ‘Plan A+’ would combine ‘fiscal discipline with targeted demand stimuli to generate growth’.

In a gloomy analysis Mr Cable suggested the economic situation in Britain was similar to that faced during the Great Depression, with the added complication of a major banking crisis.

His speech contained no fewer than 20 references to the 1930s as well as references to economic ‘slump’ and ‘depression’ But Mr Cable insisted ministers could act to get growth going again, even while sticking to tough plans to cut Britain’s budget deficit.

Cable urged Chancellor of the Exchequer George Osborne to adopt 'Plan A+' to bring Britain out of a slump

Cable urged Chancellor of the Exchequer George Osborne to adopt ‘Plan A+’ to bring Britain out of a slump

He said: ‘The 1930s experience provides useful insights, not least how it is possible to build a way out of a slump.’

Chancellor George Osborne unveiled plans last week for the Bank of England to provide a £140billion stimulus to the banks aimed at finally getting loans through to cash-strapped small businesses and people trying to get a mortgage.

The Treasury is also believed to be working on plans for a ‘massive’ increase in state-backed spending on housing and infrastructure.

Mr Cable yesterday called for the plans to be fast-tracked.

In particular, he said the state could play a key role in kick-starting the moribund house building industry by underwriting lending to the private sector. Most of the cash would remain off the Government’s books, meaning the scheme would have little impact on the drive to reduce the deficit.

Mr Cable said the scheme ‘could trigger a significant volume of housing investment, replicating the recovery model of the 1930s and leading hopefully to a virtuous circle of new building lending to increased affordability and also increased private demand.’

The powerful ‘Quad’ of top ministers, comprising David Cameron, George Osborne, Nick Clegg and Danny Alexander met last month to approve the broad outline of the plan, which is now being worked up in detail.

Ministers believe market confidence in Britain’s economic plans will allow the Government to underwrite billions of pounds worth of loans for housing and infrastructure. The scheme could result in the construction of tens of thousands of extra homes over the next few years.