Boost For Families Suffering Recession: PM

The Prime Minister David Cameron has promised "a better time ahead" after acknowledging that the turbulent economy is causing suffering for families.

Speaking at the Conservative Party conference in Manchester, Mr Cameron said the Government is taking action where it can to help keep families' bills down, citing Chancellor George Osborne's announcement yesterday of a one-year council tax freeze.

However, he will stick to the deficit reduction package of cuts and tax rises, warning that interest rates would rise if the international money markets lost confidence that Britain was paying off its debts.

''The whole message of this conference is that we know things are difficult, we know families face difficult times right now, but we have got to show the leadership to make the right decisions and get us through this difficult time and get to a better time ahead," he said.

''I completely understand that families today do see the prices at the petrol pump high, food prices have gone up. Many people, particularly in the public sector, have had their pay frozen.

''I understand the difficulty people are going through, so the council tax freeze is helpful because that is one bill that is not going up," he said.

Yesterday, the Chancellor, George Osborne set out the Government's activist economic strategy to deal with the country's debts, promote growth and spread prosperity.

In a speech said to be demonstrating the Government's determination and resolve, he explained why more debt couldn't be the solution for the debt crisis this country faces.

He said that the Government would deal with the deficit to keep interest rates low, get credit flowing, support business to rebalance the economy and also offer help for families with the cost of living.

George Osborne also stressed the importance of the low interest rates that the Government's deficit plan has achieved and took on those who would gamble the priceless fiscal credibility that this Government has earned with the international markets on the bet that borrowing a few billion pounds more would make all the difference.

To help get the economy moving the Chancellor also announced that he would look at the options to get credit flowing to small firms through 'credit easing'. This would inject money directly into parts of the economy most in need, for example small businesses, without adding to the deficit.

There were a number of new measures to support business and help rebalance the economy.

(BMcC/CD)