Vince Cable promises to take 'vigorous, targeted action' in the budget

Vince Cable, the business secretary, hit back at critics of the coalition's plans for rebuilding the battered British economy, promising "vigorous, targeted action" in this month's budget. In a speech at the City's Mansion House on Thursday , Cable confessed to "exasperation" with commentators who "expect that the government can somehow guarantee an immediate, miraculous, return to rapid economic growth". Instead, he pledged that he and his colleagues would deliver, "vigorous, targeted action where the government can make a difference; combined with robust and unsentimental withdrawal from unnecessary interference". Since it emerged that the economy contracted by 0.6% in the fourth quarter of 2010, the government has faced a chorus of scepticism about its growth strategy. Ministers have repeatedly said they want to see a "rebalancing" of the economy, away from debt-fuelled consumption and property booms. But business groups have complained that no one in government has explained how to go about it. However, Cable insisted that the "growth review" has been as rigorous as George Osborne's cost-cutting spending review last autumn. He said the government would be taking action on boosting overseas trade to economies such as India and China; cutting red tape; improving infrastructure, and freeing up Britain's planning system. Whitehall insiders said that shaking up the planning regime was one of Cable's key priorities: "If he could do only one thing, it would be that." Cable told his City audience: "The market in land is dysfunctional, distorted both by a slow and prescriptive planning regime, speculative hoarding, and a less than effective tax system." He singled out high-speed rail, the Green Investment Bank and government-backed Technology and Innovation Centres, to commercialise scientific research, as examples of how the state could help to nurture growth. However, he stressed that the task of restoring the economy to sustainable growth would be made harder by the jump in oil prices caused by the turmoil in the Middle East. Cable also admitted that he had been stung by the slide in his reputation: from the soothsayer of the financial crisis to embattled Whitehall minister. "In my more wistful moments, I do see the continued attractions of writing books, explaining how we got into this situation rather than being in government trying to dig our way out of it," he said. "But if I am less popular in some quarters than a year ago that is some sign that I am doing my job."