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Leaders in downturn concern race Leaders hit road in economy push
(about 6 hours later)
Britain's political leaders have hit the road in an attempt to show their concern about the economic downturn. Britain's political leaders have hit the road in an attempt to show their concerns about the economic downturn.
Prime Minister Gordon Brown is travelling to Swindon and South Wales on the final leg of a regional tour. Prime Minister Gordon Brown visited firms in England and South Wales on the final leg of a three-day regional tour.
Tory leader David Cameron travels to north-east England to meet bosses of car maker Nissan UK, which is cutting 1,200 jobs. Tory leader David Cameron visited north-east England where he met bosses of car maker Nissan UK, which is cutting 1,200 jobs.
And Lib Dem leader Nick Clegg is visiting a metal manufacturer in his Sheffield constituency. And Lib Dem leader Nick Clegg toured a metal manufacturer in his Sheffield constituency.
Mr Brown is on the last leg of a three-day regional tour, which has seen him visit the East Midlands, West Midlands and Derby. 'Radical action'
On a visit to a community school in Swindon, he will explain government plans to spend £21.9bn on school capital projects between 2008 and 2011, which the government claims is a sevenfold increase on 1996/97. Mr Brown completed the last leg of regional tour, which has seen him visit the East Midlands, West Midlands, Liverpool and Derby.
He will say the investment programme is central to his plan to restore economic growth and create 100,000 jobs, and schools and colleges across England are expected to benefit from refurbishment and rebuilding. He outlined government support for small and medium-sized businesses during a visit to a Midlands software firm and a Gwent company which makes in-flight equipment.
'Disgrace' We are giving what support we can to the resumption of lending Gordon Brown
But the announcement was attacked as a sham by the Conservatives, who say the school Mr Brown is visiting, the Isambard Community School, is not even newly built, as the government claims, and was in fact opened in September 2007. He said the UK was taking "radical measures" to support its economy and amid concerns about the workings of the banking system hinted at further action to force firms to increase lending.
We need the prime minister to focus on fighting the recession, not posing for sham photo opportunities Chris GraylingShadow work and pensions secretary class="" href="/1/hi/uk_politics/7815723.stm">Brown tour: View from the regions "We are giving what support we can to the resumption of lending," he said. "We will be meeting the banks in the next few days to agree with them on how we can move this forward."
Shadow cabinet minister Chris Grayling accused Mr Brown of using his regional tour to make a series of "reheated" announcements on apprenticeships and job creation. But the Conservatives said measures to kick-start bank lending had proved totally ineffectual and a new approach was needed.
"At a time of national economic crisis, to have a prime minister behaving in this way is an absolute disgrace," said Mr Grayling. After talks with senior representatives of Nissan, which is cutting almost a quarter of its workforce at the UK's biggest car plant in Sunderland, Mr Cameron reiterated his call for a £50bn scheme to guarantee bank loans to business.
"His tour has consisted of a series of sham announcements. Mr Cameron, who later toured a manufacturing business in Stockton-on-Tees and the City of Sunderland College, also called for specific help for the car industry which is struggling with plummeting sales.
"We've had the government misleading people over their plans on job creation, sexing up old announcements on apprenticeships and business support, and now he's opening up a school that has already been opened. 'Credit suffocation'
"We need the prime minister to focus on fighting the recession, not posing for sham photo opportunities." Later, shadow business secretary Alan Duncan said the number of firms going out of business would continue to increase unless decisive action was taken to free up credit.
"Companies are suffocating from a lack of credit and Labour's publicity stunts and fake headlines are not matching the action we are demanding," he said.
Gordon Brown said he was doing all he could to help small businesses
Mr Brown has defended the three-day tour by saying meeting people across the country was helping to shape future government policy.Mr Brown has defended the three-day tour by saying meeting people across the country was helping to shape future government policy.
Shadow Chancellor George Osborne has, meanwhile, renewed his attack on Mr Brown's handling of the economic downturn in a speech to a think tank and urged the prime minister to back a Tory plan for a £50bn loan guarantee scheme for businesses. Not to be outdone, Nick Clegg visited a metal manufacturer in his Sheffield constituency as part of what the party is describing as a programme of visits to see how businesses are coping with the effects of the recession.
'Extra support'
It comes as Tory leader David Cameron travels to north-east England for talks with senior representatives of Nissan, which is cutting almost a quarter of its workforce at the UK's biggest car plant in Sunderland.
Mr Cameron will also tour a manufacturing business in Stockton-on-Tees and then visit the City of Sunderland College to meet staff and students to discuss training and development in the current economic climate.
Not to be outdone, Liberal Democrat leader Nick Clegg will visit a metal manufacturer in his Sheffield constituency as part of what the party is describing as a programme of visits to see how businesses are coping with the effects of the recession.
Mr Clegg said: "Businesses up and down the country are feeling the brunt of the recession.Mr Clegg said: "Businesses up and down the country are feeling the brunt of the recession.
"My colleagues and I have been out talking to businesses to see how they are coping during the economic crisis."My colleagues and I have been out talking to businesses to see how they are coping during the economic crisis.
"At our first parliamentary party meeting of the new year next week, the Liberal Democrats will be discussing what extra support businesses will need to see them through the downturn.""At our first parliamentary party meeting of the new year next week, the Liberal Democrats will be discussing what extra support businesses will need to see them through the downturn."
It comes as a survey suggests business confidence in the government's ability to steer the country through a downturn has dropped since autumn.It comes as a survey suggests business confidence in the government's ability to steer the country through a downturn has dropped since autumn.
Just 28% of the leading business figures questioned by pollsters ComRes said they were confident in Mr Brown's ability, compared with 42% in a similar poll last October, while confidence in Chancellor Alistair Darling fell from 25% to 16% over the same period.Just 28% of the leading business figures questioned by pollsters ComRes said they were confident in Mr Brown's ability, compared with 42% in a similar poll last October, while confidence in Chancellor Alistair Darling fell from 25% to 16% over the same period.
Confidence in Mr Cameron was 46% and in his shadow chancellor George Osborne, 29%.Confidence in Mr Cameron was 46% and in his shadow chancellor George Osborne, 29%.
Meanwhile, a YouGov poll in The Sun newspaper puts the Tories seven points clear in the race for the next general election, on 41%, against Labour on 34% and the Lib Dems on 15%.Meanwhile, a YouGov poll in The Sun newspaper puts the Tories seven points clear in the race for the next general election, on 41%, against Labour on 34% and the Lib Dems on 15%.