By Matt Falloon
(Reuters) - Britain will seek to rebuild business confidence
in riot-hit London by creating an enterprise fund on Wednesday for the
worst-affected areas, according to a government source, as ministers come under
pressure to do more than just talk tough.
Much of the government's
response to four days of rioting and looting across England last week has been
limited to harsh rhetoric against the looters, with a handful of measures to
toughen up policing.
Critics say deeper social and
economic problems such as inequality, deprivation and high youth unemployment
must also be addressed if Prime Minister David Cameron is to achieve his goal
of fixing what he calls "broken Britain."
Some have drawn parallels with
inner-city riots in London and the northern city of Liverpool in the early
1980s which, although initially blamed on lawlessness, were found by an inquiry
to have been triggered by racial inequality, poverty and tensions over
heavy-handed policing.
"We can get immediate
help to those areas that bore the brunt of the disturbances and get growth
moving," the source said.
The new fund is intended to
help get businesses in areas of London such as Tottenham -- where the riots
began -- and Croydon back on their feet, the source said.
Details will be announced by ministers
on Wednesday, alongside the creation of more enterprise zones across Britain
intended to spur private sector growth in a depressed economy struggling to
grow again after an 18-month recession.
The unrest, which tarnished
the image of London and its police force with just a year to go before the city
hosts the Olympics, caused hundreds of millions of pounds in damage, with shops
set ablaze and many looted and ransacked.
Cameron, also facing questions
about his handling of a phone hacking scandal at a News Corp newspaper edited
by his former communications chief, has been criticised by some Lib Dems for a
"knee-jerk" reaction to the riots.
The prime minister has been
quick to tap into public disgust over the violence, blaming it on a breakdown
in morality and family values and promising a tough fightback, but he has
offered little so far in the way of longer-term solutions.
REBUILDING AFTER RIOTS
Opinion polls show voters
have been unimpressed by his response. Many want tougher policing and harsh
punishments for the looters but Cameron may also be judged in the long term on
his ability to fix the underlying problems behind the riots.
He has denied that the
government's austerity measures are in any way to blame for the unrest and has
also stopped short of announcing a full inquiry into the outbreak of disorder,
despite calls for one from across the political spectrum.
Community leaders have
complained that cuts to youth, welfare and employment services -- and police
budgets -- are exacerbating long-standing tensions in inner-city areas in a
nation that ranks among the most unequal in the developed world.
An official report into riots
in poor, inner-city parts of England in the early 1980s, during the tenure of
former Conservative leader Margaret Thatcher when Britain was gripped by
recession, recognised social problems such as inequality and deprivation needed
to be addressed.
Back then, Thatcher appointed
a prominent government minister, Michael Heseltine, to find out what had gone
wrong in riot-hit areas and to help rebuild communities.
The government will also
announce 11 more low tax, light regulation enterprise zones across Britain
which could create up to 30,000 jobs by the time of the next election due in
2015, the source said.
The zones are part of the
government's growth plan, an initiative aimed at rebalancing the economy as
ministers slash public spending to tackle a record budget deficit.
"It is vital that we
create balanced economic growth across the country," the source said.
"It is time for the Government to help every part of the country to grow
and realise its potential."
(Reporting by Matt Falloon,
editing by Rosalind Russell)
Source : Reuters
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