One of Northern Ireland’s leading business figures has said “urgent action” is needed in next month’s Budget to get the economy moving again.
Mark Nodder, President of Northern Ireland Chamber of Commerce (NICC) made the comment against the backdrop of Moody’s downgrade of the UK’s AAA credit rating.
“The latest downgrade by Moody’s has not come as much of a surprise and we must now wait to see how the markets react,” said Mr Nodder.
“However, the ratings are backwards looking and reflect a sluggish economic performance. The fact that the ratings spell has been broken allows the Chancellor to be braver on growth, provided the growth stimulus sought reflects market sentiment. The Prime Minister and the Chancellor will have to look into more radical measures in the next six months, to stimulate exports, generate infrastructure development and create a business finance environment which favours enterprise and growth.
“There are hundreds of hard-working companies across the country, who are determined to play their part in exporting and creating local jobs and growth. But with the right support from government to create an environment of enterprise, they can go even further to driving a lasting economic recovery.
“Urgent action is needed in the Budget next month to get the economy moving again, and any lacklustre performance will not be acceptable,” he added.
As concern mounted yesterday over the loss of the UK’s prized AAA credit rating amid economic woes, George Osborne was labelled the “downgraded Chancellor” and accused of being in “complete denial”.
Shadow chancellor Ed Balls claimed his opposite number was “just making it up as he goes along” and piled on the humiliation by reciting the Government’s own words on the importance of the rating.
He told Mr Osborne to get “out of denial” and come up with a new plan for jobs and growth.
“The downgrading of Britain’s credit rating is, in this Chancellor’s own words, humiliating for this Government,” he told MPs.
But Mr Osborne, who arrived in the Commons chamber to answer an urgent question to chants of “resign” from the Labour benches, insisted the downgrade had not brought “excessive volatility” in the markets yesterday.
Ratings agency Moody’s revised downward its verdict on the UK economy late on Friday, putting Mr Osborne under intense pressure.
The Conservatives put the safeguarding of Britain’s credit rating as the top benchmark to judge its economic success.
Mr Balls said: “The first economic test he set himself - now failed by this downgraded Chancellor. And yet he remains in denial, offering more of the same failing medicine when even Moody’s now agree sluggish growth is the problem.”
He added: “He used to say a downgrade would be a disaster, today he says this downgrade doesn’t matter - but he is still warning a further downgrade really would be a disaster.
“It is utterly baffling and illogical - he’s just making it up as he goes along.”
Mr Osborne said the ratings decision was a stark reminder of the debt problems built up in Britain over the last decade.
He added: “The credit rating is an important benchmark for any country but this Government’s economic policy is tested day in and day out in the markets and it has not been found wanting today.”
The Chancellor told MPs that Moody’s had pointed to slow growth in the global economy and the winding down of huge debts as the reasons behind the downgrade.