Cabinet Office minister Oliver Letwin has said that “we are nearing the point where we begin to see some of the benefits” of Government austerity.
He told a fringe at the Lib Dem conference organised by the TUC and the Social Market Foundation.
Mr Letwin predicted “a better situation in Europeand globally” and said economic outlook is “not so gloomy as it once was”.
He also said that “governments have always have an industrial policy, whether conscious or unconscious”.
Mr Letwin added that Plan A is the “only basis” to grow the economy.
TUC General Secretary Designate Frances O’Grady, told the fringe: “This approach is not working.”
“There has been no growth since this government came to power,” she said. “The tax take is down and the benefits bill is up.”
However, she welcomed the “new consensus” on the need for an industrial policy.