Vince Cable today breaks ranks by pushing for greater borrowing to rescue the stricken economy.
The Business Secretary’s tough stance puts him at odds with PM David Cameron as he pledges “stick to the course”.
Lib Dem Mr Cable floats the idea of borrowing more to pay for major school, rail and house-building projects.
He says it “would inject demand” in the construction industry and target “two significant bottlenecks to growth: infrastructure and housing”.
Mr Cable says it is time for a “judgement” to be made on sticking to the course or greater public investment.
“The more controversial question is whether the Government should not switch but should borrow more, at current very low interest rates, in order to finance more capital spending: building of schools and colleges; small road and rail projects; more prudential borrowing by councils for house-building,” he writes in the New Statesman magazine.
Mr Cameron is due to make a speech today in which he will attack Labour for calling for more borrowing.
“The very moment when we’re getting some signs that we can turn our economy round and make our country a success is the very moment to hold firm to the path we have set,” he will tell business leaders in Yorkshire.
“And some would falter and plunge us back into the abyss. We will stick to the course.”
Mr Cameron will brush aside the AAA credit rating loss and dire growth figures for the last quarter of 2012 and reveal Chancellor George Osborne intends to use his March 20 Budget to retrench the Government’s economic plans.
“My motives for sticking to the plan are about doing the right thing to help families and business up and down the country,” the PM will say.
Downing Street said it was “relaxed” about Mr Cable’s comments.
A source close to Mr Cable said he was not “calling for a plan B.” “This is about Plan A plus,” she said.
Shadow Financial Secretary Chris Leslie MP said: “Vince Cable may at last be seeing sense.
“Now is the time to bring forward infrastructure investment.
“It would kick-start our flatlining economy, create jobs, strengthen our economy and help get the deficit down.”
‘Plan A plus’: Vince Cable breaks Coalition ranks in call for borrowing to boost … – Mirror.co.uk
Top Stories – Google News