Growth plans to be outlined ahead of budget - Cable

LONDON | Thu Mar 3, 2011 9:37pm GMT

LONDON (Reuters) - The coalition government will this month explain how it hopes to foster a sustainable and private-sector driven economic recovery, Business Secretary Vince Cable said Thursday.
The Conservative-Liberal Democrat administration presents its budget on March 23, with pressure growing on ministers to deliver on promises to boost growth while also tackling a record budget deficit running close to 10 percent of national output.
The government has said it sees monetary policy as the key lever to aid recovery while the deficit is cut, but with high inflation raising the likelihood of higher interest rates this year, some analysts fear the economy may struggle.
Lib Dem Cable, who had opposed the depth and speed of spending cuts proposed by the Conservatives before last year's election before signing up to them in government, told a city audience that ministers would aim to create the right conditions for growth, but could not promise any miracles.
"Britain's escape from the near-death experience of financial collapse and deep recession is not the same as recovery. That will be difficult even if we continue to behave sensibly," he said.
"Over the next few weeks leading up to the Budget you will hear the concrete, difficult steps this government is taking to ensure sustainable growth."
Details are thin on the ground as yet with the focus on areas such as increasing levels of international trade, cutting red tape, reforming planning rules and giving Britain the right infrastructure to remain competitive in the future.
"Our central task ... is to strengthen a framework in which the private sector can grow the economy out of its current problems; and to do so without returning to credit-financed private consumption, a dangerous property bubble and unsustainable government deficit financing," Cable said.
(Reporting by Matt Falloon)