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| Version 0 | Version 1 |
|---|---|
| Treasury may relax fiscal rules | Treasury may relax fiscal rules |
| (20 minutes later) | |
| The government is considering re-writing its own rules on how much it can borrow in order to counter the effects of the economic slowdown. | The government is considering re-writing its own rules on how much it can borrow in order to counter the effects of the economic slowdown. |
| The new framework, which will probably be announced in the Autumn pre-Budget statement, would permit more borrowing as an alternative to increasing taxes. | The new framework, which will probably be announced in the Autumn pre-Budget statement, would permit more borrowing as an alternative to increasing taxes. |
| The Treasury stressed no judgement had yet been taken. | The Treasury stressed no judgement had yet been taken. |
| The Tories say such a move would be final nail in the coffin of Gordon Brown's reputation for prudence. | The Tories say such a move would be final nail in the coffin of Gordon Brown's reputation for prudence. |
| The Treasury said the story, first reported in the Financial Times, was "pure speculation, based on comments that are over three months old". | The Treasury said the story, first reported in the Financial Times, was "pure speculation, based on comments that are over three months old". |
| A spokesperson said: "We always said that we would set out our fiscal rules for the next economic cycle at the end of the current cycle." | A spokesperson said: "We always said that we would set out our fiscal rules for the next economic cycle at the end of the current cycle." |
| 'Stark choice' | |
| BBC political editor Nick Robinson said Gordon Brown, first as chancellor and then prime minister, has promoted his fiscal rules as evidence of the prudent way in which he was running the economy since 1997. | BBC political editor Nick Robinson said Gordon Brown, first as chancellor and then prime minister, has promoted his fiscal rules as evidence of the prudent way in which he was running the economy since 1997. |
| He repeatedly staked that reputation on his fiscal rules and now we're told that the Treasury is having to re-write the rules Conservative Party spokesman | |
| The behind the scenes re-drafting of the rule limiting the amount of government borrowing comes as tax revenues are shrinking because of the slowdown on the High Street, the stalling of the housing market and the drop in company profits. | The behind the scenes re-drafting of the rule limiting the amount of government borrowing comes as tax revenues are shrinking because of the slowdown on the High Street, the stalling of the housing market and the drop in company profits. |
| Our correspondent said: "Do nothing and the government would be faced with a stark choice - tax us more to make up the shortfall or borrow more and break their fiscal rules." | Our correspondent said: "Do nothing and the government would be faced with a stark choice - tax us more to make up the shortfall or borrow more and break their fiscal rules." |
| Responding to the reports, a Conservative Party spokesman said: "If this is true, it puts the final nail in the coffin of Gordon Brown's reputation for economic competence. | Responding to the reports, a Conservative Party spokesman said: "If this is true, it puts the final nail in the coffin of Gordon Brown's reputation for economic competence. |
| "He repeatedly staked that reputation on his fiscal rules and now we're told that the Treasury is having to re-write the rules because the government has lost control of the public finances." | "He repeatedly staked that reputation on his fiscal rules and now we're told that the Treasury is having to re-write the rules because the government has lost control of the public finances." |
| Deputy leader of the Liberal Democrats, Vince Cable, said the government was in effect acknowledging that it could not keep its own rules on public debt. | Deputy leader of the Liberal Democrats, Vince Cable, said the government was in effect acknowledging that it could not keep its own rules on public debt. |
| Mr Cable said the success of the Bank of England's control of monetary policy held lessons for the Treasury and it was now time to establish an independent body to scrutinise fiscal policy. | Mr Cable said the success of the Bank of England's control of monetary policy held lessons for the Treasury and it was now time to establish an independent body to scrutinise fiscal policy. |