The Lib Dem leader, Nick Clegg, who has for the first time conceded that the government cut investment spending too quickly after it arrived in office, was last night understood to have been swayed during a meeting with the business secretary, Vince Cable, to thrash out proposals in the next budget to spur growth.
On the table will be plans to cushion the blow of local authority budget cuts by allowing councils to borrow more freely to build new homes. It has been estimated that if borrowing caps were removed councils could build 60,000 homes over the next five years.
Advertisements
