Cable Warns Over ‘Complacency’ After Osborne Hails U.K. Growth

Business Secretary Vince Cable today will warn against complacency concerning the U.K. economy, saying that credit for signs of recovery should go to business, which continues to need more funding.

Conservative Chancellor of the Exchequer George Osborne said in a speech on Sept. 9 that the economy had “turned a corner,” and that his decision to press on with spending cuts has been vindicated. In a speech of his own, Cable will say there is a danger of “complacency, generated by a few quarters of good economic data.”

Cable will tell business leaders in Warwick, England, that while he sees “evidence of confidence returning,” this is thanks to “pragmatic British businesses and flexible British workers who kick-started the recovery,” according to his office.

The Business Secretary, a Liberal Democrat member of Britain’s coalition government, will also make a case for a government-sponsored industrial strategy, and signal readiness to work with the opposition Labour Party after the 2015 election by saying his plans have “sufficient support across the business world and across party lines to maintain a long-term focus.”

Chuka Umunna, Labour’s business spokesman, in an e-mailed statement described Cable’s words as “an embarrassing slapdown to George Osborne’s deeply complacent and out of touch speech this week.”

Cable will repeat his warning that banks aren’t lending enough to small companies, something he will say continues to threaten the recovery. He will speak at about 10 a.m.

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