The UK must deal with the debt crisis and go for growth simultaneously to fix the economy, Prime Minister David Cameron told the CBI.
Speaking at the CBI Conference, which comes ahead of next week’s Autumn Statement, Cameron spoke of the two pronged attack, which he believes will solve the current economic problems.
The UK is already dealing with its debts through a series of fiscal measures, a move that has been shunned by other European economies, which are now seeing interest rates rocket.
But tackling debt, and boosting growth, are both proving trickier than initially thought, as a vicious circle of lack of credit and confidence hits UK businesses.
A series of initiatives to boost growth through businesses have already been announced, including Project Merlin, which has seen banks lend more to businesses, the Regional Growth Fund, and the Business Growth Fund.
But the Government recognises that this is not enough, particularly for SMEs, and Credit Easing, which will use the strength of the Government’s balance sheet to pump millions of pounds into reducing the cost of loans to SMEs, will be announced next week.
The housing market is also an area being targeted by the Government, as Cameron revealed plans to support new mortgages for up to 100,000 people who would otherwise be locked out of home ownership.
The Chancellor will also announce infrastructure plans in the Autumn Statement next week, Cameron said today, claiming that we must take a more strategic and proactive approach to infrastructure – ‘something this country has long lacked’ he said.
We will be covering the Autumn Statement in full on 29th November. Please keep an eye on our website for more information.