Britain S Dire Economic Situation Will Drive Search for Efficiency Savings

Vince Cable delivers IAM Annual Lecture - and IAM launches a toolkit to help companies exploit and conserve their assets Britain’s ‘dire’ economic situation will drive search for efficiency savings...

The UK economy faces a very serious recession next year with a cascade effect of falling output, falling incomes, rising unemployment and increased mortgage arrears, warns Dr Vince Cable MP, Deputy Leader and Shadow Chancellor of the Liberal Democrat party.

Delivering the annual lecture of the Institute of Asset Management (IAM) in London on Tuesday (25th November), Dr Cable predicted that the downturn – which he described as a ‘once in a generation event’ – would spark a drive for efficiency savings:

Members heard Dr Cable blame the UK’s current economic ills on a home-grown problem including an unsustainable housing bubble and the highest levels of personal debt in the developed world, exacerbated by a complete breakdown of trust within the international financial system.

“The current deficit position, even on the government’s own predictions, is pretty dire and the public sector position is also dire,” he said.

“There will be a real drive to secure efficiency savings, and as the economy slows down there will be a growing call for government to ‘do something’, and that probably means having infrastructure projects financed by borrowing in the market.”

While he warned that slower growth would mean less demand, raising question marks over public infrastructure expansion projects, he saw ‘a fantastic opportunity’ to get on with construction projects and for national and regional government organisations, as well as housing associations, to take advantage of cheaper land prices to build more social housing, using spare capacity in the building industry.

He claimed that the whole of the British banking system had come within 24 hours of having to be nationalised – a prospect which he said could still not be ruled out. Dr Cable added that government revenues were drying up ‘at an alarming rate’ and predicted that the government deficit was unlikely to get back into balance until 2016 or 2017.

But he agreed in principle with the actions announced in the government’s pre- budget statement, and foresaw potential benefits for the UK manufacturing industry as a result of the lower value of the pound against the euro and US dollar.  A webcast of the full lecture can be viewed at http://tv.theiet.org/technology/management/1015.cfm

Media enquiries: Mike Moss 01249 715714 [email protected]

About the IAM: The Institute of Asset Management is the professional body for through-life management of physical assets - in both private and public sectors and ranging from national infrastructure and public utilities / transport to manufacturing or property www.theIAM.org

About the IAM Toolkit: The IAM toolkit which was launched on 25th November consists of a revised version of the BSI PAS 55:2008 standard for physical asset management, together with a compliance assessment tool and competences requirement framework.

About Dr Vince Cable: Vince Cable is a former Chief Economist with Shell International and Head of Economics at the Royal Institute of International Affairs.

He has been MP for Twickenham since 1997. In addition to his role as Shadow Chancellor he also speaks for his party on issues of Finance, European Economic and Monetary Union and the City. www.vincentcable.org.uk

Dr Vince Cable delivers the IAM Annual Lecture