PM vows to stick to economic plan (From Harwich and Manningtree Standard)

PM vows to stick to economic plan

10:23am Thursday 7th March 2013 in National News © Press Association 2013

David Cameron will insist he is "sticking to the plan" on the economy as his Business Secretary appeared to suggest it was time to change course.

Despite a turbulent few weeks that has seen the Government left embarrassed after its economic policy failed to deliver on the promise to protect Britain's credit rating and a by-election drubbing that heaped humiliation on Conservatives, the Prime Minister will defiantly pledge to "hold firm".

But Lib Dem Vince Cable appeared to join critics calling for a Plan B to help kick-start growth.

In a move that is likely to fuel speculation of a rift within the coalition on the Government's key economic policy he suggested capital spending, funded by borrowing, may be needed.

Mr Cameron will argue, however, that those who "falter" would plunge the United Kingdom "back into the abyss" just at a time when there were signs the Government's plan was starting to work.

In a major speech on the economy, the Prime Minister will insist his determination to stick to the austerity path the Government set in 2010 is about "doing the right thing" rather than stubbornness.

Speaking in West Yorkshire, Mr Cameron 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."

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 British Chambers of Commerce urged the Government and the Bank of England to underwrite a massive programme of infrastructure projects, in order to attract in private investment and kick-start growth.

BCC director general John Longworth told BBC Radio 4's Today programme: "It doesn't have to be like this... We believe that the Bank and the Government ought to be focusing on what really matters, which is getting business going and getting exports going. They can do that by building confidence now, so that businesses that have cash can invest."