UK opposition leader repeats loan guarantee plan

David Cameron, the leader of Britain's opposition Conservative party, repeated on Monday his plans for underwriting loans to businesses and tighter regulation of the financial community.

Cameron said the main problem affecting the economy is that banks are not lending to businesses and action was needed to kick-start this process.

The Conservative leader made no new policy statements in his speech in London but said his plan for a national loan guarantee was "a massive state intervention to help the banks lend again".

Cameron called for "new rules and incentives to create a new culture of responsibility" which need to be enforced by the UK regulator.

Cameron has argued that two main problems face the country – a recession coupled with a record level of government debt – and that the government is trying to tackle one while ignoring the other.

"In the long term, we would take action to reduce debt – control future spending, making government live within its means and getting taxes down for good," said Cameron.