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PM hails UK tourism opportunities PM promises more lending measures
(41 minutes later)
Prime Minister Gordon Brown has said Britain must be a leader in the "new type of world economy", as his cabinet held a meeting in Liverpool. Prime Minister Gordon Brown has promised further measures to ensure banks resume lending, warning that this was "vital" to the economy.
He told the city's tourism executives Liverpool's regeneration "shows what can be done for the future". Businesses were "worried" and homeowners needed more security, he said on a visit to Liverpool.
British tourism must grasp the "huge opportunities" ahead, Mr Brown said. The UK must be a leader in "new type of world economy", with tourism among the areas to be expanded, Mr Brown added.
But the Conservatives accused Labour of a "lack of interest" in the tourism industry, while the Liberal Democrats called Mr Brown's speech "hollow". But the Tories accused him of a "lack of interest" in tourism, while the Lib Dems called his words "hollow".
Mr Brown and his top team are in Liverpool for the third cabinet meeting to be held outside London since September. 'Urgent action'
'Hypothetical debate' Mr Brown and his frontbench team were in Liverpool for a two-hour cabinet meeting - the third to be held outside London since September.
Chief Secretary to the Treasury Yvette Cooper told the BBC that while a lot of people were on fixed rate mortgages - four million mortgage holders had already benefitted from rate cuts, as well as the banks. It came on the same day as the Bank of England reduced interest rates to 1.5% in an effort to stimulate lending.
But she said stories that the government was planning to boost the money supply were part of a "hypothetical debate". In a speech ahead of the meeting Mr Brown said he had acted on the concerns felt by businesses, adding: "That's why we had to take urgent action a few weeks ago, when we had to recapitalise the banks - and we were the first country in the world to do it, but others have followed us.
We are in difficult world times, I don't think anybody is in any doubt about that Gordon Brown We are in difficult world times. I don't think anybody is in any doubt about that Gordon Brown
"This is not the issue here right now. Of course in America where interest rates are much lower they have been looking at different ways to support the economy with interest rates near to zero. But that's not the position we are in here or elsewhere in Europe." "And that's why in the next few weeks we are looking at the measures we can take to take the next step, and take it with effect, and that is to get the banks to resume the lending that is necessary."
She said the government was looking at "different ways" to increase bank lending and get money into the economy, for example through tax cuts and public investment. If banks did not lend to firms and homeowners, the UK would lose "an important function that is vital to every part of the country".
After the meeting, a Downing Street spokesman said: "In the face of this difficult global economic situation, both the prime minister and chancellor made clear that we would continue to work not only to give real help to families and businesses in Britain now, but to work with our international partners to tackle the global economic downturn."
He added that Mr Brown would discuss the "next steps forward" in dealing with the crisis with fellow world leaders.
The prime minister is on a tour of the English regions and Wales to explain how the government is handling the downturn.The prime minister is on a tour of the English regions and Wales to explain how the government is handling the downturn.
Ahead of the cabinet meeting, ministers gathered for a "listening" event with about 200 Liverpool residents. 'Great industry'
'Future investment' Ahead of the cabinet meeting Mr Brown told 200 tourism chiefs gathered at Liverpool's Arena and Convention Centre that the city's regeneration was an example of how British tourism could benefit from burgeoning world tourism, as economies such as China and India develop.
And Mr Brown told a meeting of tourism chiefs at Liverpool's Arena and Convention Centre that the city's regeneration was an example of how British tourism could benefit from burgeoning world tourism, as economies such as China and India develop.
He said four million British jobs depended on tourism, which generated £115bn a year: "This is a great industry, millions of jobs depend on it and it creates a huge amount of wealth for our country and I believe it can be even greater in the future."He said four million British jobs depended on tourism, which generated £115bn a year: "This is a great industry, millions of jobs depend on it and it creates a huge amount of wealth for our country and I believe it can be even greater in the future."
He predicted the world economy would double in 20 years and added: "We are in difficult world times, I don't think anybody is in any doubt about that. He predicted the world economy would double in 20 years and added: "We are in difficult world times. I don't think anybody is in any doubt about that.
"We are seeing the birth of a new type of world economy and we have got to be the leaders of it.""We are seeing the birth of a new type of world economy and we have got to be the leaders of it."
Rather than taking advantage of the weakened pound to increase the number of foreign tourists, the government has decided to cut the budget for overseas advertising further Don FosterLiberal Democrats Brown tour: View from the regionsRather than taking advantage of the weakened pound to increase the number of foreign tourists, the government has decided to cut the budget for overseas advertising further Don FosterLiberal Democrats Brown tour: View from the regions
Downing Street has confirmed Mr Brown will discuss the economic crisis with US Federal Reserve governor Ben Bernanke and German chancellor Angela Merkel in meetings in London and Berlin next week.Downing Street has confirmed Mr Brown will discuss the economic crisis with US Federal Reserve governor Ben Bernanke and German chancellor Angela Merkel in meetings in London and Berlin next week.
Earlier Business Secretary Lord Mandelson announced a £35m start-up programme for the North West region to help get new companies off the ground.Earlier Business Secretary Lord Mandelson announced a £35m start-up programme for the North West region to help get new companies off the ground.
Chancellor Alistair Darling held a breakfast meeting with regional business leaders in Liverpool, as Mr Brown toured the city's regenerated docks area. And chancellor Alistair Darling held a breakfast meeting with regional business leaders in Liverpool, as Mr Brown toured the city's regenerated docks area
The prime minister, accompanied by Culture Secretary Andy Burnham and North West Minister Beverley Hughes, took a boat ride around the Marina and the Albert Dock. Representatives from the car manufacturers Jaguar Land Rover were among those attending.
Jaguar campaign
Mr Brown was also shown around the Museum of Liverpool, which is under construction.
The ministers were escorted around by TV writer Phil Redmond, creator of the TV series Hollyoaks and Brookside, and one of the main organisers of the city's year as European Capital of Culture.
Representatives from Jaguar Land Rover were among those at the meeting hosted by the chancellor.
Mr Brown met Rolls-Royce apprentices in Derby at the start of the tripMr Brown met Rolls-Royce apprentices in Derby at the start of the trip
Mr Darling was asked to support a campaign calling on the government to provide a short-term loan or provide loan guarantees to the car maker, which employs 2,200 in Merseyside and 13,000 in the West Midlands. Mr Darling was asked to support a campaign calling on the government to provide a short-term loan or provide loan guarantees to Jaguar, which employs 2,200 in Merseyside and 13,000 in the West Midlands.
Mr Darling said: "The car industry, Jaguar, GM, are very important to the North West, to the whole country. Mr Darling, speaking shortly before Nissan announced 1,200 job losses in Sunderland, said: "The car industry, Jaguar, GM, are very important to the North West, to the whole country.
"We are in constant touch with the industry, we will do whatever we can to support it.""We are in constant touch with the industry, we will do whatever we can to support it."
He also said he would do "whatever necessary" to get banks lending again. Responding to Mr Brown's comments, shadow culture secretary Jeremy Hunt said: "Instead of lecturing the tourism industry, Gordon Brown should answer one simple question: why has our share of international tourism declined by 10% since Labour came to power?
"We do face difficult times but what is encouraging is that governments across the world are showing they are prepared to take action to help people," he said.
But shadow culture secretary Jeremy Hunt said: "Instead of lecturing the tourism industry, Gordon Brown should answer one simple question: why has our share of international tourism declined by 10% since Labour came to power?
"Labour's lack of interest in tourism has meant that one of our national crown jewels has been left to gather dust - just at the time when we need other industries to take up the slack from the crisis in financial services.""Labour's lack of interest in tourism has meant that one of our national crown jewels has been left to gather dust - just at the time when we need other industries to take up the slack from the crisis in financial services."
Liberal Democrat culture spokesman Don Foster said: "Gordon Brown's hollow words will do little to reassure the huge number of Britain's hoteliers and B&B owners facing bankruptcy.Liberal Democrat culture spokesman Don Foster said: "Gordon Brown's hollow words will do little to reassure the huge number of Britain's hoteliers and B&B owners facing bankruptcy.
"Rather than taking advantage of the weakened pound to increase the number of foreign tourists, the government has decided to cut the budget for overseas advertising further."Rather than taking advantage of the weakened pound to increase the number of foreign tourists, the government has decided to cut the budget for overseas advertising further.
"This will end up costing even more jobs in this vital sector.""This will end up costing even more jobs in this vital sector."
The regional tour is one of several trips the prime minister has been on around Britain in the past few months. Last year the cabinet met in Birmingham and Leeds; before that the last time it had met outside London or Chequers was 1921. Last year the cabinet met in Birmingham and Leeds; before that the last time it had met outside London or Chequers was 1921.
Questions have been raised over the cost of holding meetings outside London, after it emerged West Yorkshire Police had spent £138,000 on security for the second cabinet meeting in Leeds.Questions have been raised over the cost of holding meetings outside London, after it emerged West Yorkshire Police had spent £138,000 on security for the second cabinet meeting in Leeds.
But Downing Street believes it is a "worthwhile investment" to have the cabinet hearing people's views in different parts of the country.But Downing Street believes it is a "worthwhile investment" to have the cabinet hearing people's views in different parts of the country.
Is Gordon Brown visiting your area? Is the company you work for expecting a visit? What do you think about his tour?Is Gordon Brown visiting your area? Is the company you work for expecting a visit? What do you think about his tour?
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