UK Politics

David Cameron denies UK is in 1930s-style slump

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Media captionDavid Cameron: "I'm confident that members of the eurozone know how serious the situation is"

David Cameron has denied the UK is in a 1930s-style slump, but said more will be done to get the economy moving.

He told BBC News the government would use its "financial strength" to help homeowners and businesses get low interest rates.

Infrastructure projects and more housing will help boost the UK economy, the prime minister said.

Speaking in Mexico at the G20 summit, Mr Cameron promised an "active, sleeve-rolled up government".

In an interview with BBC Political Editor Nick Robinson, Mr Cameron dismissed suggestions by Business Secretary Vince Cable that the UK was in a slump like the 1930s.

He said: "We are obviously facing in Europe a difficult set of circumstances that is harming our growth and our prospects and its going to take time to fix.

"Frankly Britain needs to roll up its sleeves and do everything we can to get our economy moving."

He said the government had cut the UK's budget deficit by a quarter since taking office in 2010 but stressed there was still more to do.

The government would not "go on a spending and borrowing spree" he said, but it would make sure record low interest rates were passed on to businesses and home owners.

On the crisis in the single currency, the prime minister said he was confident that the eurozone leaders knew how serious the situation was.

But, he said: "It is sometimes frustrating that they have to get so close to the brink before they take the steps that are necessary."

He said he understood the difficulties German Chancellor Angela Merkel was facing as a member of the eurozone that "had run it economy very effectively over many years", but Germany needed to have solidarity with other members of the single currency, he added.

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