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Tories blast 'green shoots' claim 'Green shoots' remarks defended
(20 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 has denied she is "complacent" after claiming she could see "a few green shoots" of economic recovery.
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".
Downing Street defended her, saying that despite "pressures" some firms were "expanding their workforces". But Baroness Vadera defended her remarks, saying she had been referring to improvements in the credit market.
In 1991 chancellor Norman Lamont was criticised for saying he detected "the green shoots of economic spring".In 1991 chancellor Norman Lamont was criticised for saying he detected "the green shoots of economic spring".
He made his comments at a Conservative Party conference during a recession.He made his comments at a Conservative Party conference during a recession.
'Bit too early''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."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."
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 blogThe 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
She later told BBC News she was "not complacent at an incredibly difficult time".
The minister added she had been "having a discussion about the credit market" where, on Tuesday, a large company had been able to raise hundreds of millions of pounds.
She said: "Is this a positive straw in the wind, or should we say one swallow does not make a summer? It's too early to say."
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.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".
'Parallel universe''Parallel universe'
Lib Dem Treasury spokesman Vince Cable said recovery was still "sadly a long way off".Lib Dem Treasury spokesman Vince Cable said recovery was still "sadly a long way off".
"Baroness Vadera is clearly living in a parallel universe if she thinks the economy is beginning to recover," he said."Baroness Vadera is clearly living in a parallel universe if she thinks the economy is beginning to recover," he said.
"Ministers shouldn't talk down the economy, but Vadera's comments are a work of fiction.""Ministers shouldn't talk down the economy, but Vadera's comments are a work of fiction."
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
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.
A Downing Street spokesman said Baroness Vadera had been "underlining that there is a great deal of uncertainty in the economy at the moment".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 it was not his role to give a "detailed view" on the "green shoots" comments.He added it was not his role to give a "detailed view" on the "green shoots" comments.
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."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."
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.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.
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.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.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".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.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".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".