'Give the government credit for acting swiftly and decisively'

THE coalition government does not need a Plan B in case its cuts risk plunging Britain into a double-dip recession, the head of Britain's leading business lobby claimed yesterday.

John Cridland, director-general of the CBI, said: "We fundamentally disagree with that view," and claimed the UK was already in a better position than some troubled south European countries. But he warned that the road out of the downturn was never going to be anything other than "a slow and unspectacular recovery".

His comments came in the CBI's review of the first year of the government. "Growth in 2011 will be greater than it was in 2010, and a platform for stronger growth in 2012," he said.

The CBI chief said the government should be given credit for "acting decisively and swiftly on the deficit (that) has certainly laid a firm foundation for future growth".

But he warned against expecting any quick fix for the economy. "This was not a normal recession. It was a credit-led recession and as such it will take longer to recover from," he said.

Referring to an economic feelgood factor, Mr Cridland added: "It's not going to feel like it to the man and woman on the Clapham omnibus for some while."

However, regarding the austerity cuts that have already triggered significant countrywide redundancies, Mr Cridland added that there had already been positive results. "Our situation is not that of Greece or Portugal," he said, referring to countries which had received EU bail-outs.

Sir Roger Carr, chairman of British Gas-owner Centrica, who was formally elected president of the CBI at its annual meeting yesterday, said the austerity programme was "absolutely critical" in safeguarding Britain's AAA credit rating in the bond markets.

"That's the bedrock on which everything else can be built," said Mr Carr, who was chairman of the British confectionery giant Cadbury when it was controversially taken over by Swiss giant Nestle last year.

The CBI also renewed its call yesterday for tougher strike laws. Mr Cridland said industrial action should only be allowed when 40 per cent of the eligible workforce voted to strike rather than "a small turnout and small majority".