Branson hands Cameron a win
By Ian Dunt
David Cameron won some valuable political support yesterday from Sir Richard Branson, after the entrepreneur branded excess borrowing a huge risk to the UK economy.
“I believe the UK’s record budget deficit does pose a serious risk to our recovery,” he told the Evening Standard.
“It would be damaging if we lost the confidence of the markets through delayed action, and saw interest rates have to go up steeply.”
The comments will keep the government on the back foot as the Tories pick up more and more support for their argument that spending cuts should take place as soon as possible to make sure the markets remain confident in the UK.
Over the weekend, 20 leading economists signed a letter to the Sunday Times urging quick action to reduce the deficit, contradicting Gordon Brown’s argument that the Tory leader is isolated on the issue.
“We are going to have to cut our spending and I agree with the 20 leading economists who said we need to start this year,” Sir Richard said.
“The next government, whatever party that is, must set out a plan to reduce the bulk of the deficit over a parliament by cutting wasteful spending and must not put off those tough decisions to next year.
“These factors threaten to undermine the confidence of international and UK businesses, consumers and the global financial markets. That could cost jobs and reduce investment in Britain. We must send a clear signal that we have the issues in hand and a clear strategy for UK plc.”
The economy is expected to play a leading role in the general election campaign as Britain gears up to head to the polls.
