Cable warns of economic complacence

Source BBC News@ tienganhvui.com

10 September 2013 Last updated at 19:42 ET

The business secretary is due to speak at a joint government/CBI conference

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Lib Dem Cabinet minister Vince Cable is to warn the government against getting complacent over the economy.

It comes two days after Chancellor George Osborne said the UK was "turning a corner" amid signs of recovery.

But Mr Cable is due to say he and fellow ministers "can't rest on our laurels".

In a speech to business leaders he will claim that "a few quarters of good economic data" did not mean the country was out of the danger zone.

The business secretary is expected to say the UK is experiencing the "beginnings of a recovery story", but that it would not become "meaningful" until there was strong and sustained business investment.

Earlier this week the chancellor said there were "tentative signs of a balanced, broad-based and sustainable recovery".

The two coalition ministers have clashed in the past over economic policy.

'Embarrassing slap-down'

In a CBI conference speech at Warwick University, Mr Cable is expected to say: "We can't rest on our laurels.

"The kind of growth we want won't simply emerge of its own volition. In fact, I see a number of dangers. One is complacency, generated by a few quarters of good economic data."

However he is expected to add: "It isn't difficult to see evidence of confidence returning." and will talk of "positive trends in production".

"Taken together with success stories like the car industry and export growth in emerging markets, we have the beginnings of a recovery story," Mr Cable will go on.

"But there are risks, not least the housing market getting out of control. Recovery will not be meaningful until we see strong and sustained business investment, and this... as a share of GDP, is currently the lowest in the G7."

Shadow business secretary Chuka Umunna said Mr Cable had issued an "embarrassing slap-down" to the chancellor.

But the Labour MP added: "It also reminds everyone that you can't trust a word the Lib Dems say.

"Vince Cable has supported the chancellor's policies which choked off the recovery in 2010."

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