Cable: UK could slip back into recession
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Business Secretary Vince Cable has warned that the UK could fall back into recession despite the best attempts of the Government to avoid that scenario.
In an interview with ITV, Cable was asked if he could promise the UK could avoid a double-dip recession.
He said: “I can’t do that. We know conditions are very difficult but the government is doing the best it can to protect people.”
Earlier this week the Office for National Statistics revealed that inflation hit a high of 5.2 per cent, while the Bank of England decided to implement a further £75bn of quantitative easing in the market in a bid to boost growth.
Asked if it was time for the government to amend its austerity programme, Cable said: “There is no point pretending this isn’t difficult… the basic discipline is something the government is doing enthusiastically.
“We are not masochists… but we are also doing positive things looking at how to create growth through business.”
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Readers' comments (2)
Julian Stevens | 20 Oct 2011 10:10 am
From where I'm sitting and from what most of my clients are telling me, the UK has been in a steadily deepening recession for at least the past 12 months and it's going to get worse before it gets better.
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Peter Herd | 20 Oct 2011 11:00 am
Until Western governments start to force large banking corporations to repair their balance sheets by selling off assets and breaking up the large corporations that have been built up over the last 30 years Western economies will continue to struggle.
At present we have these very same large organisations were lit relating the Western economies and threatening these governments with low levels of borrowing to businesses in an attempt to control regulation. I see this on a daily basis when trying to arrange finance for both personal and business clients where lending now is very hard and it is my opinion that this is set to continue to be hard for a number of years ahead unless governments force these large organisations to break up into smaller companies.
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