Britain's business secretary says maintaining government spending, investment vital

• Source: Xinhua
• [14:27 September 15 2009]
• Comments

Britain's Business Secretary Peter Mandelson said on Monday that it is vital to maintain government spending and investment as the effects of the recession are not yet finished.

Addressing the London School of Economics, Mandelson said "despite signs that the economy is picking up, our work is far from done. The task ahead is to build the new economy that will emerge from the global whirlwind that has hit us."

He said the British government must actively invest in the economic growth of the future, adding that "the growth will be the biggest antidote to debt and will determine how far and fast we are able to pay it down in the future."

Therefore, we need continued government action to create the right competitive conditions for the British economy to generate future jobs, Mandelson said.

In addition, he called for a responsible approach to reduce the fiscal deficit, saying that "our duty is not just to pass on sound finances, but also a strong society and secure people with the capacity to prosper."

"So we must not lose our nerve in the face of high borrowing that we have had to take on to deal with the costs of the recession," Mandelson added.

There will be pressures on spending once Britain is safely through the recession, but he said the choices the Labor party made will aim to sustain investment in the nation's priorities to protect essential services and activities.

Britain's opposition Conservative party leader David Cameron has repeatedly called for immediate cuts in public spending over the past few months.