Cable: 'We'll keep up the pressure on banks to lend'

Cable demanded financier's "get their priorities right". Bonus culture must not get in the way of support for UK businesses, the business secretary told an audience of business leaders and local manufacturers. Cable said: "We make it absolutely clear that we want banks to give first priority to accumulating capital as a base for their business lending at the expense of extravagant remuneration or dividend payments. They've got to get their priorities right." The government will support lending conditions through "credit easing", Cable added. The scheme will see the government use treasury balance sheets to keep borrowing costs low, Cable explained. The comments came as Cable outlined the Coalition's 'modern industrial policy' for UK industry. Strands included better access to finance, developing workforce skills, affordable energy and investment in innovation. Cable pledged heavy support for growing UK manufacturing. The business secretary also rubbished claims the sector was in terminal decline. He said: "If the decline of manufacturing is inevitable in a rich country why are the German's doing so well at it?" Cable added: "One of the reasons why we've declined is in the past we've undervalued it. In more recent we've subscribed to a rather dangerous and naive idea that a country of over 60milion people can make a living out of financial engineering. It's a terrible illusion." Cable was speaking at the CBI's annual Manufacturing Dinner held at the National Motorcycle Museum, Solihull.