Reassuring Growth Masks Underlying Economic Problems

10.13.56am GMT Thu 27th Nov 2003

Reacting to the GDP data this morning showing business investment falling in the third quarter of this year, Vince Cable MP, Liberal Democrat Shadow Chancellor, said:

"Today's figures underline that while overall growth is reassuring there are worrying imbalances in the British economy. Low business investment inevitably means low competitiveness. manufacturers can hardly be expected to invest in their future when they are struggling to survive the present.

"Exports continue to perform poorly and the economy is being sustained by consumer borrowing, some secured against house prices and some not secured at all.

"The Chancellor needs to set out what the Government think is a sustainable level of personal debt rather than let hundreds of thousands of families drift into being dangerously overextended."