Cable: Housing boom could lead to 'short term bounce'

Cable: Housing boom could lead to 'short term bounce'
Cable: Housing boom could lead to 'short term bounce' Credit: Joe Giddens/PA Wire

Britain's economic recovery could prove to be a "short term bounce" if it is based on a housing boom, Vince Cable has warned.

The Business Secretary insisted sustained growth depends on rebalancing the economy and preventing a return to "boom and bust".

The comments, during a keynote speech at the Bank of England, are the latest expression of concern from the senior Liberal Democrat over the state of the property market.

He also launched a scathing attack on the Tories, branding their plans for deeper spending cuts after the election "slashing for its own sake", and complaining that the prospect of a referendum on EU membership is undermining business confidence.

In the address to the Royal Economic Society, Mr Cable argued that a "real recovery is taking place".

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Economy expected to show strongest growth since 2007

Official figures are expected to show the economy is growing at its fastest rate since 2007, the year before the crash. But Business Secretary Vince Cable warned the recovery could prove to be a "short term bounce" if it is based on a housing boom.