Recession risks will rise unless British banks raise the amount of money they lend to business and individuals. This is according to Business Secretary Vince Cable who was interviewed with The Sunday Times.
“The top priority now, to boost growth and jobs and avoid a double dip (recession), is making the banks lend again,” Cable said to the newspaper. On Wednesday the Bank of England is expected to downgrade its forecasts for economic growth in Britain.
“People’s living standards have been quite badly hit. That is only going to change if we get sustainable growth. It’s too difficult to say when,” Cable continued in the interview.
In terms of its liability in relation to the EU debt crisis as well America’s weakening economy and downgrade, Britain remains strong enough to weather it unlike in 2008. “Back then, Britain was at the centre of the hurricane. This time round we are on the edge of the storm,” he said.