Business News

23 November 2011 Cameron outlines strategy for growth but warns of 'tough times ahead'

The Prime Minister David Cameron has outlined the Government's strategy for growth, conceding that Britain faces challenging economic times ahead.

Speaking at the CBI conference this week, Mr Cameron said the Chancellor's upcoming Autumn Statement would include plans to improve the country's infrastructure by building on investment in transport, energy and superfast broadband networks.

He also signalled that George Osborne would use next week's Statement to unveil a new credit easing scheme to boost lending to small and medium-sized businesses.

However, the Prime Minister reaffirmed the Government’s commitment to its deficit reduction plan, adding that this was still ‘line one, clause one, part one’ of the strategy for economic recovery.

He also admitted that the Government was braced for disappointing growth figures next week when the Office for Budget Responsibility publishes its latest forecasts.

'We are recovering from a debt crisis, not a traditional recession,' he told the conference.

He continued: 'I am absolutely clear about the right answer for the UK economy. It can be summed up in one sentence - we need to deal with our debts and go for growth.

'We need a fundamental rebalancing of the economy - more investment, more exports, and a broader base to an economic future. If policy is not directed towards this goal it will fail'.