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Tories blast 'green shoots' claim Tories blast 'green shoots' claim
(40 minutes later)
Business minister Baroness Vadera's comment that she could see "a few green shoots" of recovery have been attacked by the Tories as "insensitive".Business minister Baroness Vadera's comment that she could see "a few green shoots" of recovery have been attacked by the Tories as "insensitive".
Shadow business secretary Alan Duncan said the comments, made to ITV News, showed ministers were "out of touch".Shadow business secretary Alan Duncan said the comments, made to ITV News, showed ministers were "out of touch".
She said it was still early but she was "seeing a few green shoots". Downing Street defended her, saying that despite "pressures" some firms were "expanding their workforces".
In 1991 then chancellor Lord Lamont was much criticised for saying he detected "the green shoots of economic spring", which was regarded as premature. In 1991 chancellor Norman Lamont was criticised for saying he detected "the green shoots of economic spring".
Baroness Vadera was asked when the UK could expect to see some "green shoots" and replied: "It's a very uncertain world right now globally... I wouldn't want to be the one predicting it." He made his comments at a Conservative Party conference during a recession.
'Bit too early'
On ITV News, Baroness Vadera was asked when the UK could expect to see some "green shoots" amid the economic downturn and replied: "It's a very uncertain world right now globally... I wouldn't want to be the one predicting it."
"I am seeing a few green shoots but it's a little bit too early to say exactly how they'd grow.""I am seeing a few green shoots but it's a little bit too early to say exactly how they'd grow."
'Unsuitability' The PM is running around like a headless chicken from one bogus announcement to another and doing nothing for confidence David Cameron class="" href="/1/hi/business/7827273.stm">Small business loan plan unveiled class="" href="http://www.bbc.co.uk/blogs/nickrobinson/">Nick Robinson's blog
Baroness Vadera's comments came as Barclays announced it was to cut 2,100 UK jobs, Jaguar Land Rover said it was cutting 450 staff and administrators of music chain Zavvi announced it would close a further 18 stores, with the loss of 353 jobs.
Mr Duncan said: "Shriti Vadera's comments go to show how out of touch and insensitive Gordon Brown's ministers are."Mr Duncan said: "Shriti Vadera's comments go to show how out of touch and insensitive Gordon Brown's ministers are."
He said she had "just advertised her own unsuitability for addressing the difficulties that the victims of Gordon Brown's recession are facing".He said she had "just advertised her own unsuitability for addressing the difficulties that the victims of Gordon Brown's recession are facing".
It came as Barclays announced it was to cut 2,100 UK jobs, Jaguar Land Rover said it was cutting 450 staff and administrators of music chain Zavvi announced it would close a further 18 stores, with the loss of 353 jobs. 'Parallel universe'
Lord Hunt of Wirral, the shadow business spokesman in the Lords, said Baroness Vadera's view of the economy was extremely "rose-tinted". Lib Dem Treasury spokesman Vince Cable said recovery was still "sadly a long way off".
And Business Secretary Lord Mandelson said he believed the UK was "some way from the end of the road" in dealing with the economic fallout from the banking crisis. "Baroness Vadera is clearly living in a parallel universe if she thinks the economy is beginning to recover," he said.
Announcing proposals to guarantee loans for small businesses, he described the current situation as the "biggest and most complex" financial shock the world had ever experienced. "Ministers shouldn't talk down the economy, but Vadera's comments are a work of fiction."
The PM is running around like a headless chicken from one bogus announcement to another and doing nothing for confidence David Cameron Small business loan plan unveiledNick Robinson's blog
At prime minister's questions Conservative leader David Cameron challenged Mr Brown to repeat predictions made "just seven weeks ago" that the economy would start to grow again at the end of June.
Mr Cameron said the reason the predictions were out was because they were based on the temporary 2.5% VAT cut working but it had proved an "expensive failure" which had been "condemned" by retailers.
He said: "It is not just that the PM is running around like a headless chicken from one bogus announcement to another and doing nothing for confidence.
"Isn't the worst thing of all this; by spending £12.5bn by cutting VAT isn't he just building up debts for Britain's children in a vain attempt to save his own skin?"
And former trade minister Lord Jones said the government should be "big enough" to admit the VAT cut had failed and to rescind it - instead spending the money on providing credit to businesses.
'Achieving nothing'
Mr Brown said a VAT cut had been backed by the former Conservative chancellors Ken Clarke and Lord Lamont - something Mr Cameron disputed.
He added: "You may think VAT is unimportant but at the end of every week a typical family has more than £5 extra in their pocket. That may not matter to the Tories. But that's £275 a year, more money for everyone in the community, not just for the few that you support."
Mr Cameron went on to criticise the government for adopting a "pale imitation" of the Tories' own £50bn loan guarantee scheme and said policies, like the VAT cut and stamp duty holiday, were "achieving nothing".
The whole Conservative Party policy is to cut public spending when they need it Gordon Brown Barclays planning 2,100 job cutsZavvi to close another 18 storesJaguar Land Rover cuts 450 staffThe whole Conservative Party policy is to cut public spending when they need it Gordon Brown Barclays planning 2,100 job cutsZavvi to close another 18 storesJaguar Land Rover cuts 450 staff
But Mr Brown said he offered "real help now" and accused the Conservatives of being "isolated" in their approach - he says they would cut public spending - and said it was a global financial crisis happening across the world. The BBC's political editor Nick Robinson said he had been told Baroness Vadera was referring to the fact that the bond market had begun to open up for bigger borrowers and good news from retailers like Morrisons and Tesco.
To Tory jeers, he said: "Nobody is copying the Conservative party economic policy. You like to think people are. France is not copying the Conservative policy, Germany is not copying the Conservative economic policy, the present administration in America is not copying the Conservative policy, the future government in America is not copying the Conservative party." A Downing Street spokesman said Baroness Vadera had been "underlining that there is a great deal of uncertainty in the economy at the moment".
He added: "The whole Conservative Party policy is to cut public spending when they need it - you cannot fund support for business without the public expenditure to make it possible." He added it was not his role to give a "detailed view" on the "green shoots" comments.
Liberal Democrat leader Nick Clegg questioned the government's plan to guarantee up to £20bn of loans to small and medium firms. The spokesman also said: "But these are uncertain economic times. There are pressures on jobs and businesses and families. At the same time you are seeing some businesses that are expanding their workforces."
He said: "Tax payers have already had to sink £37bn pounds into our banks to get them lending again. So today they'll be wondering why on earth they should risk a further £10bn just to get the banks to do what they promised to do in the first place? Business Secretary Lord Mandelson said he believed the UK was "some way from the end of the road" in dealing with the economic fallout from the banking crisis.
"So why is the prime minister playing copy cat with the leader of the Conservatives, when he should be playing hardball with the banks?" Announcing proposals to guarantee loans for small businesses, he described the current situation as the "biggest and most complex" financial shock the world had ever experienced.
At prime minister's questions earlier, Conservative leader David Cameron challenged Mr Brown to repeat predictions made "just seven weeks ago" that the economy would start to grow again at the end of June.
He said Mr Brown was "running around like a headless chicken from one bogus announcement to another and doing nothing for confidence".
The prime minister said he offered "real help now" and accused the Conservatives of being "isolated" in their approach - he says they would cut public spending - and said it was a global financial crisis happening across the world.
Liberal Democrat leader Nick Clegg questioned the government's plan to guarantee up to £20bn of loans to small and medium firms, saying it was an attempt at "playing copy cat with the leader of the Conservatives, when he should be playing hardball with the banks".