Cameron: Labour economic joyride needs repair

Tuesday 15th July 2008

David Cameron today blasted the government for taking the economy for a joyride, leaving it in need of repair.

Outlining his party's economic plans at the CBI today, the Conservative leader described Gordon Brown as being "unwilling to give a full answer" to the UK economic troubles, instead blaming international pressures.

"I believe it is time for Gordon Brown to stand up and take responsibility and get the economy back on track. That is what we are doing."

He added the government had been on "a decade-long joyride with the economy leaving it battered, bruised and in need of repair".

Repair plans described by the Tory leader include a version of the US Chapter 11 insolvency rules which allow firms struggling to continue trading with the backing of a majority of creditors.

He claimed it would see "fewer companies in liquidation".

For the property market, Mr Cameron supported the government's £50 billion provision of liquidity to lenders but called for more help for first-time buyers.

He proposed changes to the stamp duty system to provide up to 90 per cent of first time buyers relief from the tax.

The Conservative leader has called on the government to ensure plans for saver protection for the first £50,000 of deposits – to prevent another Northern Rock – to be introduced before the summer recess of parliament.

"Savers need reassurance their cash is protected. They should act now before recess."

Mr Cameron demanded more powers for the Bank of England to step in to step a future Northern Rock crisis – as the Federal Reserve did in the US over the Bear Stearns collapse.

He also pledged to reduce the tax burden, promising to increase the size of the state less than the growth of the economy over a economic cycle.

"There is no magic wand to bring food and gas prices down, but a Conservative government will stop it getting worse."

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