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| Vince Cable keeps up pressure to boost growth | Vince Cable keeps up pressure to boost growth |
| (about 2 hours later) | |
| The business secretary, Vince Cable, has stepped up his demands for borrowing to boost growth and has insisted the ringfencing of departmental spending from 2015 has to end, with the exception of the aid budget. | The business secretary, Vince Cable, has stepped up his demands for borrowing to boost growth and has insisted the ringfencing of departmental spending from 2015 has to end, with the exception of the aid budget. |
| Speaking on BBC Radio 4's Today programme on Monday, Cable also sounded more sympathetic than some in the Liberal Democrats' leadership to voting with Labour on the mansion tax in a Commons vote this week. | Speaking on BBC Radio 4's Today programme on Monday, Cable also sounded more sympathetic than some in the Liberal Democrats' leadership to voting with Labour on the mansion tax in a Commons vote this week. |
| He repeated his demand, made in a Guardian interview, to end the protection of some key budgets. | He repeated his demand, made in a Guardian interview, to end the protection of some key budgets. |
| "The problem about ringfencing as an overall approach to policy is that when you have 80% of all government spending ringfenced then all future pressure comes on the army, police, local government and skills. You get a very unbalanced approach to public spending," he said. | "The problem about ringfencing as an overall approach to policy is that when you have 80% of all government spending ringfenced then all future pressure comes on the army, police, local government and skills. You get a very unbalanced approach to public spending," he said. |
| "I went along with the overall approach to ringfencing in this parliament – as part of the coalition we have to work as a team – but as a long-term approach I don't think it is very sensible." | "I went along with the overall approach to ringfencing in this parliament – as part of the coalition we have to work as a team – but as a long-term approach I don't think it is very sensible." |
| Asked about whether his party should back a Labour motion supporting the mansion tax in the Commons, he said: "If it is a real commitment I would certainly welcome that. Nick Clegg and I are very strong supporters of a mansion tax [but] these opposition days in parliament are about positioning rather than serious policymaking. We will have a look at what the opposition motion says." | Asked about whether his party should back a Labour motion supporting the mansion tax in the Commons, he said: "If it is a real commitment I would certainly welcome that. Nick Clegg and I are very strong supporters of a mansion tax [but] these opposition days in parliament are about positioning rather than serious policymaking. We will have a look at what the opposition motion says." |
| Cable said there was no simple, cost-free or risk-free solution to boosting growth. He added, however, that the balance of risk may be changing and the priority had to be getting the economy moving. | |
| "Once you get the economy going, you generate more tax revenue, there are less people dependent on public spending and the budget then tends to improve itself. That is the direction we should be going." | "Once you get the economy going, you generate more tax revenue, there are less people dependent on public spending and the budget then tends to improve itself. That is the direction we should be going." |
| He said borrowing to take out a loan on a fuel-efficient car was different to using the credit card to keep a gas-guzzling car on the road. | He said borrowing to take out a loan on a fuel-efficient car was different to using the credit card to keep a gas-guzzling car on the road. |
| He said the deficit would not increase in the medium term, arguing that the deficit the government was targeting was current spending, not capital spending. | He said the deficit would not increase in the medium term, arguing that the deficit the government was targeting was current spending, not capital spending. |
| The Treasury's fiscal aim was to target the structural deficit, he said, adding: "At present the government has the advantage of very, very low interest rates, so the servicing costs are very low and the people who are arguing in this area for being more ambitious are saying this is a unique situation, we have to renew a lot of our infrastructure by taking advantage of these very low interest rates.." | The Treasury's fiscal aim was to target the structural deficit, he said, adding: "At present the government has the advantage of very, very low interest rates, so the servicing costs are very low and the people who are arguing in this area for being more ambitious are saying this is a unique situation, we have to renew a lot of our infrastructure by taking advantage of these very low interest rates.." |
| He said he accepted that some felt this could be dangerous if the borrowing was reckless. | He said he accepted that some felt this could be dangerous if the borrowing was reckless. |