U.K. Government in Internal Squabble Over Borrowing
Stimulus ... yada yada
Vince Cable has become the first cabinet minister to question George Osborne's "plan A" economic strategy by suggesting that the Treasury should use Britain's record low interest rates to increase borrowing as a way of stimulating growth.
On the eve of a speech by David Cameron on the economy, in which the prime minister is expected to criticise Labour for demanding increased borrowing, the business secretary said that greater public investment was "crucial" to reviving the economy.
The intervention by Cable, expressed in a lengthy essay in the New Statesman, exposes deep divisions on the economy within the coalition.
The prime minister and Osborne regularly taunt Ed Balls, the shadow chancellor, about economic responsibility, following the latter's calls for increased public investment – which would, the Tories say, have to be financed by increased borrowing.