Balance between cuts and
growth must be struck for sustainable economic future – Cable
A plan to foster
growth and lock in the recovery will be published today by the
Business Secretary Vince Cable when he appears for the first time
at the Business, Innovation and Skills Select Committee.
Dr Cable argues in his paper, A Strategy for Sustainable Growth,
that striking the right balance between making savings to public
spending and promoting sustainable growth is crucial. But in
bringing spending under control the Government is determined to
create an environment that enables businesses to invest with
confidence, thereby putting the recovery onto a sustainable
footing and preparing the economy for the future.
The biggest risk to the nation’s economic future is not
controlling the deficit effectively, he argues. British business
cannot prosper while the risk of a debt crisis hangs over the
economy.
The Government has taken decisive action to reduce the deficit
through measures in the emergency budget – which has also set out
new opportunities for enterprise and sustainable growth.
Business Secretary Vince Cable will say:
“Despite the demands of fiscal austerity we have the tools and
capacity to achieve sustainable growth and there is a role for
Government to ensure they are used effectively.
“My department, which I have argued should be seen as the
“department for growth”, has a key role to play in creating the
conditions for businesses, the drivers of our economy, to start
out, invest, grow and be profitable which is critical for the recovery.
Our aim at BIS is to reshape the economy so that growth comes
from business investment and exports.
We need to rebalance away from an economy built on debt to a one
that is greener and more technologically advanced. Our economy
also needs to be prepared for the long term challenges ahead – the
switch to lower carbon technologies in particular. This should
also build on the UK’s historic strength in science and
technology.
“It is also vital that we create opportunities that are spread
more across the regions, and through those sectors where the UK is
strong and can add real value.”
The new plan sets out the three key ways that the department for
Business, Innovation and Skills can contribute:
promoting free and open markets. promoting business and
innovation through entrepreneurialism and individual engagement in
the economy; smarter public and private investment in the economy
including creating a highly-skilled workforce and;
To generate growth Ministers are determined to create an
enterprise culture where everyone with talent is inspired and able
to turn ideas into successful businesses. Getting rid of
unnecessary barriers that can stifle growth and creating
incentives will be vital.
Dr Cable argues that it is a shared challenge across Government
to create a more sophisticated approach that directs public
spending at those areas where they can have the greatest impact on
growth and takes wider account to ensure that policy protects and
supports the business environment. Dr Cable wants to ensure that
what the public sector does spend encourages increased private
sector investment.
The paper published today will be followed by a number of
initiatives from BIS designed to foster and encourage growth and a
cross Government White Paper will follow later in the year.
Science and Universities Minister David Willetts will deliver on
Wednesday his first major speech on space where he will outline
how we will become a world leader in this area, one which is
increasingly important to all our lives and one that can be a
powerful vehicle for economic growth. BIS and the Treasury will
also publish a green paper shortly looking at options to ensure
finance is available to a range of businesses of different sizes.
These come ahead of a consultation document on skills to be
published by Skills Minister, John Hayes, which will lay out the
Government principles for the skills system in the backdrop of
reduced spending on skills and seek views on a way forward.
Later this year Government will also publish a White Paper on new
approach to sub-national growth. It will detail the Government’s
strategy for supporting economic growth across the country. In
particular, it will set out the changing approach to regional
economic development.
Notes to editors
1. To view A Strategy for Sustainable Growth please go to www.bis.gov.uk/growth
2. BIS' online newsroom contains the latest press
notices, speeches, as well as video and images for download. It
also features an up to date list of BIS press office contacts. See
http://www.bis.gov.uk/newsroom
for more information.
Contacts:
BIS Press Office
NDS.BIS@coi.gsi.gov.uk
Joshua Coe
Phone: 020 7215 5943
Joshua.Coe@bis.gsi.gov.uk