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Business Secretary Vince Cable cites “positive” economic signs
The downgrading of the UK’s credit rating has been described as “largely symbolic” by Business Secretary Vince Cable.
Moody’s, which cut the UK’s rating from AAA to Aa1 on Friday, said that the country’s economic growth “will remain sluggish over the next few years”.
In his response to the ratings decision Dr Cable told the BBC there were “positive” signs for the UK economy, including falling employments figures and increased exports, and downplayed the downgrade’s significance, saying “In terms of the real economy, there is no reason why the downgrade should have any impact” and that “these things do not necessarily affect the real economy but they do reflect the fact that we are going through a very difficult time”.
Whilst associated with the left of the Liberal Democrats, the junior coalition party, and a declared Keynesian Dr Cable dismissed calls for a change in the government’s current economic strategy of deficit reduction by arguing it would be “utterly counter-productive” and “a bit juvenile” to change course.
Speaking about his role as Business Secretary Dr Cable stated in regards to economic growth that “skills training, supporting manufacturing, supporting exports, investing in science” were the “things that really matter” and that he will continue to concentrate on “factors that create real substantial long term growth”.
Following the downgrade the UK’s senior economics minister, the Conservative Chancellor of the Exchequer George Osborne, argued that Moody’s decision was a “stark reminder of the debt problems facing our country – and the clearest possible warning to anyone who thinks we can run away from dealing with those problems”.
“We will go on delivering the plan that has cut the deficit by a quarter, and given us record low interest rates and record numbers of jobs”, he added.
