News from The Labour Party

Cameron’s policies would choke off growth

Business needs to be aware of the two faces of David Cameron.

Lord Mandelson, Labour’s Business Secretary, responding to David Cameron’s speech to the CBI today, said:

“David Cameron is not ‘going for growth’. His policies would choke off growth.

“You cannot say you want to go for growth while in the same breath committing to pull support from the economy prematurely and deep cuts to the very investment in future growth that business needs.

“Business needs to beware. Mr Cameron’s two faces have again been on show at the CBI today. While he talks a business-friendly language he is hiding policies that would set back the economic recovery and leave business weaker in the longer-term.

“Dominique Strauss-Kahn’s comments today on the dangers of prematurely withdrawing the stimulus, and his stress on the need for continued international co-operation, illustrates the economic risk the Tories pose.

“The fact is that the Tories continue to oppose the real help to small businesses we have given through the recession and would choke off the recovery by withdrawing the economic stimulus prematurely.

“Even the headline corporation tax pledge David Cameron repeats today disguises a £4 billion tax hike on business investment by withdrawing tax reliefs and allowances that incentivise business investment in future growth.

“And the doubts voiced by leading business organisations today over Tory plans to gut the Regional Development Agencies can be added to the doubts they have expressed over the Tories’ isolation in Europe and the Conservative pledge to immediately rip up the planning framework designed to speed up decisions on nuclear power, transport capacity and other infrastructure.

“David Cameron got it wrong on the recession. He is now getting it wrong on the recovery.”

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