PM sticking to economy plan

Prime Minister David Cameron will promise to continue "sticking to the plan" on the economy, despite the loss of the country's AAA credit ratings and signs from his Business Secretary Vince Cable it was time to change course.

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PM: No choice but to stick to economic plan

The Prime Minister insisted the coalition would stick to its economic strategy "because there is no alternative that can secure our country's future."

Speaking in West Yorkshire, he said:

"I know some people think it is being stubborn to stick to a plan, that somehow this is just about making the numbers add up with no care whatsoever for what it means for people affected by the changes we make.

"But nothing could be further from the truth. My motives for sticking to the plan are exactly about doing the right thing to help families and business up and down the country."

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PM: No 'magic money tree' to deal with UK's debts

David Cameron has insisted the coalition will stick to its economic strategy despite Business Secretary Vince Cable suggesting it is time for a rethink.

Writing for the New Statesman, Mr Cable suggested "the balance of risk" had changed between deficit reduction and growth.

But today Mr Cameron said there was no "magic money tree" that allowed the Government to spend and borrow more.

There are some people who think we don't have to take all these tough decisions to deal with our debts.

They say that our focus on deficit reduction is damaging growth. And what we need to do is to spend more and borrow more.

It's as if they think there's some magic money tree. Well, let me tell you a plain truth: there isn't.

– Prime Minister David Cameron

PM will 'roll up sleeves and fight' for economic future

David Cameron has pledged to 'stick to the plan' to fix the economy and said he is 'ready to fight' to improve the competitiveness of the UK.

"Some of the changes we need to be competitive will be a big fight. Housing reform, planning reform, the building of new roads, new by-passes.

"The highspeed rail, these are fundamental changes, they are essential for the future of our economy but they are not - and I don't expect them to be - universally supported.

David Cameron speaking in Yorkshire

"But my message is simple, people should make no mistake, in this battle for the future of Britain and our competitiveness, I'm prepared to roll up my sleeves and have a fight if that's what it takes."

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Cable suggests Government should increase borrowing

Prime Minister David Cameron will today reaffirm his commitment to "sticking to the plan" to deal with Britain's economy.

It comes as the Business Secretary Vince Cable appeared to be at odds with his Conservative coalition partners by suggesting it was time to change course.

Business Secretary Vince Cable Credit: Tim Ireland/PA Wire

In an article in the New Statesman, Mr Cable suggested the Government should take advantage of "current very low interest rates in order to finance more capital spending".

While defending the austerity approach, Mr Cable said it was time to ask whether the "balance of risk" had shifted, making the need for growth a greater priority than maintaining market confidence.

Cameron: Deficit reduction plan is working

David Cameron will argue his plan to cut the budget deficit is working during a speech in West Yorkshire today.

He will say that the deficit is already down by a quarter, and that point to low interest rates and increased export rates to some of the fastest growing economies to the world show the progress already being made. He is expected to say that over the past three years:

  • Exports to Brazil are up by a half
  • Exports to India are up by more than a half
  • Exports to China have doubled
  • Exports to Russia are up by 133%

BT to announce 1,000 engineering jobs

The new jobs are in addition to the 1,500 extra engineers recruited last year. Credit: Press Association.

Mr Cameron's visit to West Yorkshire will coincide with an announcement by BT that it is creating more than 1,000 engineering jobs in its Openreach business. The new recruits will be responsible for installing fibre broadband in customers' homes.

The Prime Minister will warmly welcome the announcement during his visit. He is expected to say:

"Working with business, the Government is driving a transformation in UK broadband services and with an extra 100,000 homes and businesses gaining super fast broadband availability each week, this is already taking shape."

Cameron: Austerity plan 'the right thing'

Speaking in West Yorkshire, Mr Cameron is expected to say that sticking to the government's deficit reduction plan is the "right thing" for families and businesses across the country, and not a result of "being stubborn". He is expected to say:

I know some people think it is being stubborn to stick to a plan. That somehow this is just about making the numbers add up with no care whatsoever for what it means for people affected by the changes we make.

But nothing could be further from the truth. My motives for sticking to the plan are exactly about doing the right thing to help families and business up and down the country.

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