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17 September 2011
Last updated at 21:09 ET
A Lib Dem Cabinet minister will vow to fight the "enemies of growth" as he announces a £600m package to support local infrastructure and housing.
Treasury Chief Secretary Danny Alexander will tell the party's conference the economy has "very big problems" and "vested interests" which threaten recovery must be overcome.
He will promise £500m to kick-start stalled public works projects and £100m for council housing in England.
But business groups say more is needed.
Sunday's announcement is one of a series of initiatives expected over the coming weeks as the Conservative-Lib Dem coalition government seeks to counter claims from Labour that it has no growth strategy amid signs of a further deterioration in the economy.
After figures showed unemployment rose sharply over the summer, Lib Dem leader Nick Clegg has insisted that ministers are not solely focused on spending cuts to drive down the deficit and they "can and will do more" to boost demand and job creation.
'Vested interests' Mr Alexander, number two at the Treasury, has been pressing government departments in recent days to ensure that all money earmarked for major infrastructure projects is being spent and not held back.
Continue reading the main story “Start Quote
In his speech - on the first full day of the conference - he will say the government will confront obstacles to its vision of a "sustainable, balanced, competitive and fair" economy.
"A huge deficit, an unbalanced economy, our trading partners in real difficulty. These are very big problems," he will say.
"Solving them will take years and every one of us has a role to play to support growth, to help families under pressure."
"To get there we must break down the vested interests - the enemies of growth that stand in the way of future prosperity."
Mr Alexander will announce the creation of a £500m "Growing Place" fund to support infrastructure projects which have got into financial difficulty.
The one-off funding will be available in the current financial year to councils and other bodies to galvanise projects which have stalled due to cash flow problems or lack of market confidence.
Ministers say priorities will be determined locally and recipients will be able to retain any money left over to be recycled into other projects.
Promising to "unlock development and create jobs," Mr Alexander will say the scheme will enable local government to invest in priority projects and "get people into work".
A plan announced last week to single out projects of strategic national importance - such as Crossrail and broadband rollout - to ensure they move ahead quickly was criticised for being too modest after it emerged ministers were sticking with existing timings rather than accelerating them.
'Realism needed' Mr Alexander, one of five Lib Dem minister in cabinet, will also pledge to free up £100m in extra revenue for local councils to spend on housing.
Councils planning to withdraw from the housing revenue account subsidy system - a government funding mechanism - will benefit from a lower interest rate on borrowing enabling them to do so.
The one-off move will apply to the 135 local authorities considering the move early in 2012.
Labour say more substantial action is required to tackle youth and female unemployment, including a VAT cut, a rise in the bank levy to pay for new homes, and a guarantee that firms awarded public sector contracts recruit a minimum number of apprentices.
And business groups have urged ministers to be more ambitious in their approach.
"After more than a year in government, business people tell me they want to see realism, pragmatism and growth on the Lib Dems' agenda," said John Longworth, director general of the British Chambers of Commerce.
"Business is looking for evidence that jobs, enterprise and wealth creation, which ultimately underpin public services and redistribution, sit at the heart of all three parties thinking."
Delegates in Birmingham will also debate tuition fees, drugs policy and schools funding on Sunday as the five-day event gets into full swing while party president Tim Farron and schools minister Sarah Teather will make keynote speeches.
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Treasury Chief Secretary Danny Alexander will tell the party's conference the economy has "very big problems" and "vested interests" which threaten recovery must be overcome.
He will promise £500m to kick-start stalled public works projects and £100m for council housing in England.
But business groups say more is needed.
Sunday's announcement is one of a series of initiatives expected over the coming weeks as the Conservative-Lib Dem coalition government seeks to counter claims from Labour that it has no growth strategy amid signs of a further deterioration in the economy.
After figures showed unemployment rose sharply over the summer, Lib Dem leader Nick Clegg has insisted that ministers are not solely focused on spending cuts to drive down the deficit and they "can and will do more" to boost demand and job creation.
'Vested interests' Mr Alexander, number two at the Treasury, has been pressing government departments in recent days to ensure that all money earmarked for major infrastructure projects is being spent and not held back.
Continue reading the main story “Start Quote
A huge deficit, an unbalanced economy, our trading partners in real difficulty. These are very big problems”
End Quote
Danny Alexander
Chief Secretary to the Treasury
In his speech - on the first full day of the conference - he will say the government will confront obstacles to its vision of a "sustainable, balanced, competitive and fair" economy.
"A huge deficit, an unbalanced economy, our trading partners in real difficulty. These are very big problems," he will say.
"Solving them will take years and every one of us has a role to play to support growth, to help families under pressure."
"To get there we must break down the vested interests - the enemies of growth that stand in the way of future prosperity."
Mr Alexander will announce the creation of a £500m "Growing Place" fund to support infrastructure projects which have got into financial difficulty.
The one-off funding will be available in the current financial year to councils and other bodies to galvanise projects which have stalled due to cash flow problems or lack of market confidence.
Ministers say priorities will be determined locally and recipients will be able to retain any money left over to be recycled into other projects.
Promising to "unlock development and create jobs," Mr Alexander will say the scheme will enable local government to invest in priority projects and "get people into work".
A plan announced last week to single out projects of strategic national importance - such as Crossrail and broadband rollout - to ensure they move ahead quickly was criticised for being too modest after it emerged ministers were sticking with existing timings rather than accelerating them.
'Realism needed' Mr Alexander, one of five Lib Dem minister in cabinet, will also pledge to free up £100m in extra revenue for local councils to spend on housing.
Councils planning to withdraw from the housing revenue account subsidy system - a government funding mechanism - will benefit from a lower interest rate on borrowing enabling them to do so.
The one-off move will apply to the 135 local authorities considering the move early in 2012.
Labour say more substantial action is required to tackle youth and female unemployment, including a VAT cut, a rise in the bank levy to pay for new homes, and a guarantee that firms awarded public sector contracts recruit a minimum number of apprentices.
And business groups have urged ministers to be more ambitious in their approach.
"After more than a year in government, business people tell me they want to see realism, pragmatism and growth on the Lib Dems' agenda," said John Longworth, director general of the British Chambers of Commerce.
"Business is looking for evidence that jobs, enterprise and wealth creation, which ultimately underpin public services and redistribution, sit at the heart of all three parties thinking."
Delegates in Birmingham will also debate tuition fees, drugs policy and schools funding on Sunday as the five-day event gets into full swing while party president Tim Farron and schools minister Sarah Teather will make keynote speeches.
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