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Vince Cable warns against economic complacency | Vince Cable warns against economic complacency |
(about 5 hours later) | |
Lib Dem Cabinet minister Vince Cable is to warn the government against complacency over the economy. | |
It comes two days after Chancellor George Osborne said the UK was "turning a corner" amid signs of recovery. | It comes two days after Chancellor George Osborne said the UK was "turning a corner" amid signs of recovery. |
But Mr Cable is due to say he and fellow ministers "can't rest on our laurels". | But Mr Cable is due to say he and fellow ministers "can't rest on our laurels". |
In a speech to business leaders he will claim that "a few quarters of good economic data" did not mean the country was out of the danger zone. | In a speech to business leaders he will claim that "a few quarters of good economic data" did not mean the country was out of the danger zone. |
The business secretary is expected to say the UK is experiencing the "beginnings of a recovery story", but that it would not become "meaningful" until there was strong and sustained business investment. | The business secretary is expected to say the UK is experiencing the "beginnings of a recovery story", but that it would not become "meaningful" until there was strong and sustained business investment. |
Earlier this week the chancellor said there were "tentative signs of a balanced, broad-based and sustainable recovery". | Earlier this week the chancellor said there were "tentative signs of a balanced, broad-based and sustainable recovery". |
The two coalition ministers have clashed in the past over economic policy. | The two coalition ministers have clashed in the past over economic policy. |
'Embarrassing slap-down' | 'Embarrassing slap-down' |
In a CBI conference speech at Warwick University, Mr Cable is expected to say: "We can't rest on our laurels. | In a CBI conference speech at Warwick University, Mr Cable is expected to say: "We can't rest on our laurels. |
"The kind of growth we want won't simply emerge of its own volition. In fact, I see a number of dangers. One is complacency, generated by a few quarters of good economic data." | "The kind of growth we want won't simply emerge of its own volition. In fact, I see a number of dangers. One is complacency, generated by a few quarters of good economic data." |
However he is expected to add: "It isn't difficult to see evidence of confidence returning" and will talk of "positive trends in production". | |
"Taken together with success stories like the car industry and export growth in emerging markets, we have the beginnings of a recovery story," Mr Cable will go on. | "Taken together with success stories like the car industry and export growth in emerging markets, we have the beginnings of a recovery story," Mr Cable will go on. |
"But there are risks, not least the housing market getting out of control. Recovery will not be meaningful until we see strong and sustained business investment, and this... as a share of GDP, is currently the lowest in the G7." | "But there are risks, not least the housing market getting out of control. Recovery will not be meaningful until we see strong and sustained business investment, and this... as a share of GDP, is currently the lowest in the G7." |
Shadow business secretary Chuka Umunna said Mr Cable had issued an "embarrassing slap-down" to the chancellor. | Shadow business secretary Chuka Umunna said Mr Cable had issued an "embarrassing slap-down" to the chancellor. |
But the Labour MP added: "It also reminds everyone that you can't trust a word the Lib Dems say. | But the Labour MP added: "It also reminds everyone that you can't trust a word the Lib Dems say. |
"Vince Cable has supported the chancellor's policies which choked off the recovery in 2010." | "Vince Cable has supported the chancellor's policies which choked off the recovery in 2010." |