Cutting too soon risks stifling growth and recovery

2.43.00pm GMT Sun 7th Mar 2010

Commenting on the BCC's downgrading of its expectations for economic growth this year, Liberal Democrat Shadow Chancellor, Vince Cable said:

"The BCC are spot on.

"The British economy is still weak and cutting spending too soon risks stifling growth and recovery.

"The Liberal Democrats have made it clear that the point at which we cut spending will be based on economics and not political dogma.

"While Labour buries its head in the sand and the Tories mire themselves in confusion, only the Liberal Democrats have produced a credible and coherent plan for dealing with the deficit.

"The BCC are also right to highlight the key role that sound and solvent small and medium sized businesses have to play in our economic recovery.

"Unfortunately, many of these businesses are being starved of the capital they need. The nationalised and semi nationalised banks must work in the national interest and get credit flowing to these businesses so that they can survive and expand. This will protect jobs and ensure that growth isn't damaged."