Cameron calls for measures to assist small businesses

Sunday, 19 October 2008 12:00 AM

Conservative party leader David Cameron has called for wide-ranging measures to be taken to assist small businesses in Britain during the credit crunch.

Writing in the Observer, the opposition leader reiterated that a rescue plan was needed for the banks but accused the government of not setting aside enough in the boom years to truly aid those suffering in the current economic climate.

"Gordon Brown cannot hide from the truth. In the short term, we've got to help families up and down the country with proposals to get them through the downturn," he said.

"In the long term, we've got to repair our economy by getting the public finances back in order."

Mr Cameron said he was announcing a plan to assist small businesses with their cash flow problems and ease the problems caused by "irresponsible capitalism and irresponsible government".

He called on councils to pay businesses quicker in order to help them meet payments and for central government to defer the payment of VAT by six months.

The opposition leader also urged banks to "behave more responsibly" calling on financial institutions to ease the availability of loans and thereby prevent firms from going bankrupt.

Yesterday, the Conservative leader attacked the government over its actions in the build-up to the crisis saying that Labour had "spent and borrowed without restraint" and been "irresponsible" with the management of the economy.

The attacks come after the Tories expressed support for government's decision to provide a £500 billion rescue package to aid the banking industry and to use £37 billion to buy stakes in three of the country's best known banks.

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• economy
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• economy and finance