The Liberal Democrats have told the government to take a tough stance towards companies seeking assistance and to avoid increased regulation of the financial markets as the UK moves towards a ‘war economy'.
Speaking at the Liberal Democrat Party Conference in Bournemouth, Vince Cable, the Lib Dem shadow Department of Trade and Industry (DTI) Secretary, said: “A succession of blue-chip companies are likely to experience serious trouble in the coming weeks. Some of these companies may rattle the begging bowl at the government's door. Targeted intervention should be carefully considered.
"But the government should not be in the business of bailing out failing companies who have under-estimated risk, under-insured or under invested in the past.”
He pointed to the airline industry as an example and said the government could intervene, but should remember the industry “already benefits from low landing charges and zero fuel duty”.
“The best help for British business will be to set it free from unnecessary regulation and bureaucracy,” he said.
