People should be proud to buy British to kick-start our economy - Clegg

4.33.00pm GMT Thu 23rd Oct 2008

Elwyn Watkins, Lib Dem Parliamentary hopeful for Oldham East & Saddleworth, today welcomed plans put forward by Lib Dem leader Nick Clegg to kick-start the economy.

Elwyn said, "Economic recovery starts at home and people should be proud to buy British and buy local.

"Small businesses are the lifeblood of the economy in places like Oldham, Saddleworth, Lees, Shaw and Crompton, and they will be crucial to bringing the nation through the recession."

Elwyn's comments follow the launch today by Liberal Democrat leader Nick Clegg and Shadow Chancellor Vince Cable of plans to give immediate help to UK businesses.

Nick Clegg called for a labelling scheme for non-food products manufactured in the UK. Liberal Democrat plans to cut taxes and lower interest rates would have the most effect if that extra money provided to people is spent to stimulate demand for small British businesses during the recession.

Nick Clegg will also set out longer term proposals to create a more a balanced economy to ensure more stable growth in the future, involving massive investment in green infrastructure and the creation of thousands of new 'green-collar' jobs.

Nick said, "Our package of measures will give them greater protection against the consequences of bankers' mistakes.

"Restoring growth comes from putting money into people's pockets, through interest rate cuts and tax cuts. To have the greatest effect that money needs to be spent here, stimulating demand for small UK businesses.

"We must use this opportunity to create a new economy, which is more resilient, green, and less reliant on financial services. The City has been treated as the master of the economy for too long. It is time for it to be the servant once more."

Measures to directly help small businesses include:

· Pushing for a substantial cut in interest rates to lower the cost of loans and investment

· Immediately overhauling the Small Firms Loan Guarantee Scheme to improve government support for business loans

· Banks receiving government financial assistance adopting a new code of conduct on rearranging business credit and overdrafts

· Developing with energy companies an assistance package for small businesses struggling with high energy bills