Vince Cable is of the say that the Government will do whatever is in its capabilities to offer support to the car industry, but is reluctant to fight other conations in a subsidy war.

The business secretary said that the industry was extremely imperative to the UK and central to the alliance Government's thrust to rebalance the financial system back towards manufacturing.

But he also signaled that carmakers may perhaps not count on the type of straight help being offered by Gordon Brown's Government after the economic recession gravely distressed the industry.

“I don't see the future in terms of large-scale support for individual firms”, Mr. Cable told the Society of Motor Manufacturers and Traders' Automotive Summit in his first big speech in relation to the sector.

He said that the subsidy war cannot be fought and won.

The remarks added mass to the outlook that the alliance is turning away from the preceding Government's industrial policy, as it starts to make swinging cuts to public investment.

Carmaking is one of Britain's leading industries, responsible for 800,000 jobs, 10% of exports and much of the investment on research and development.

Mr. Cable said the Government was looking at techniques to help the industry that were affordable and indisputably helpful, which includes support for research and skills growth.