South Suffolk MP Tim Yeo

Veteran Tory says PM should borrow to invest

Thursday, November 22, 2012
11.54 AM

As David Cameron fights for less spending in Brussels, a veteran Conservative MP from Suffolk is urging him to invest more in infrastructure back in the UK...and to not be afraid of borrowing to do it.

South Suffolk MP Tim Yeo told me that where a clear economic benefit could be outlined for a particular capital investment project, upgrading a road or rail line for example, then ministers should not balk at the idea of increasing borrowing to fund it.

He said: “If borrowing is for long term infrastructure assets it should be considered, providing a direct economic benefit can be demonstrated.

“I do not approve of borrowing due to a failure to cut current spending quickly enough. But where the economic benefit is evident borrowing is acceptable.”

Mr Yeo held several front bench positions in the Tory party including the shadow trade and industry job between 2002 and 2003.

His words come as the prime minister looks for ways to boost growth in the British economy; earlier this week he announced a relaxation of the system of judicial review which allows members of the public to challenge big planning decisions.