Business secretary Vince Cable defended the Government’s economic policies this morning but admitted construction was now the weak link in the economy.
Speaking on Radio 4’s Today programme this morning he insisted the Government was working hard with its “Plan A-plus” to boost the economy and stimulate growth.He said: “We realise that the construction industry is the weak link in the economy, and we’re putting in place measures to deal with it.
“There are a whole lot of things that we’ve got to do to get the economy moving, and housing and infrastructure is one area.
Cable added: “The government has a big role, in getting housing moving, and infrastructure, which is why we’re now putting the system of guarantees in place.
“And on top of that we’re doing a whole lot of other things to attract inward investment.
Cable blamed the problems facing the building industry on property bubble leading up to 2008 in private housing and commercial property.
“That collapsed - that’s what destroyed the construction industry,” he said.
His comments came after industry leaders rounded on the government yesterday for its failure to turn around the ailing economy after a disastrous set of GDP figures.
Mike Leonard, director of the Modern Masonry Alliance, said: “Cable’s Plan sounds closer but oh so far from the Plan B presented by Get Britain Building 18 months ago.
“The coalition needs to act rather than talk and invest to accumulate. 25,000 additional public rented homes and an immediate cut in VAT for home improvements for 12 months would be a great start!”
