This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

UK's Cameron To Dismiss Calls For Policy Shift

By CASSANDRA VINOGRAD

LONDON (AP) â¿¿ British Prime Minister David Cameron on Thursday vowed to stick to austerity, rejecting calls to focus more on economic growth despite the country's recent embarrassing credit ratings downgrade.

Cameron argued that the U.K. is beginning to see signs that the size of its debt is falling thanks to his government's tough spending cuts and tax increases and said changing that approach risks plunging Britain "back into the abyss."

"There are signs that our plan is beginning to work," he said in a speech in northern England.

Cameron noted the U.K.'s budget deficit was decreasing and that the government's borrowing rates on bond markets were at record lows â¿¿ an indication international investors are confident the country will be able to pay off its debts. He also cited signs of a recovery in exports.

"The very moment when we're just getting some signs that we can turn our economy round and make our country a success...is the very moment to hold firm to the path we have set," he said.

Cameron's Conservative Party and its junior coalition partner, the Liberal Democrats, have pledged to cut Britain's debts, which had piled up amid the global financial crisis and costly banking bailouts. The government has pushed through a grueling austerity drive, with cuts to public-sector jobs and welfare payments.

But the budget cuts have also hurt the economy, which is close to falling back into recession for a third time in just under four years. Critics of the government's policies say that easing off the austerity drive would help the economy, which would in turn help public finances by boosting tax receipts for the government.

Cameron's defense of his economic policy follows a bruising set of economic developments in recent weeks.

Moody's Investor Service downgraded the U.K.'s credit rating last month, saying that sluggish economic growth would hinder the government's ability to control rising debt levels and deal with any new financial shocks. Two other ratings agencies, Fitch and Standard & Poor's, have Britain on negative outlook, signaling they too could lower the country's credit rating.

1 of 2

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
DOW 17,113.54 +61.81 0.36%
S&P 500 1,983.53 +9.90 0.50%
NASDAQ 4,456.0160 +31.3120 0.71%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto
Advertising Partners

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs