This article is from the source 'bbc' and was first published or seen on . It will not be checked again for changes.
You can find the current article at its original source at http://news.bbc.co.uk/go/rss/-/1/hi/uk_politics/7515066.stm
The article has changed 4 times. There is an RSS feed of changes available.
| Version 0 | Version 1 |
|---|---|
| Darling: Public feel 'squeezed' | |
| (about 6 hours later) | |
| Chancellor Alistair Darling has warned his Cabinet colleagues not to expect any more money for schools, hospitals or transport. | Chancellor Alistair Darling has warned his Cabinet colleagues not to expect any more money for schools, hospitals or transport. |
| He said people were feeling "squeezed" by rising prices and would not tolerate higher taxes for public services. | |
| He told the Times newspaper that he did not believe there would be a swift improvement in the economy. | He told the Times newspaper that he did not believe there would be a swift improvement in the economy. |
| The Tories said his hint that borrowing rules might be relaxed dealt a fatal blow to the government's reputation. | The Tories said his hint that borrowing rules might be relaxed dealt a fatal blow to the government's reputation. |
| Period of uncertainty | Period of uncertainty |
| Mr Darling told the newspaper that ministers who ask for more cash will get a very short reply. | Mr Darling told the newspaper that ministers who ask for more cash will get a very short reply. |
| He also suggested that bringing burgeoning public borrowing under control would be politically unacceptable. | He also suggested that bringing burgeoning public borrowing under control would be politically unacceptable. |
| It's basically the end of the Brown era of economics George OsborneShadow chancellor Robert Peston analysisSend us your comments | It's basically the end of the Brown era of economics George OsborneShadow chancellor Robert Peston analysisSend us your comments |
| "There are a lot of people in this country who feel they work hard, and they're feeling squeezed," he said. | "There are a lot of people in this country who feel they work hard, and they're feeling squeezed," he said. |
| "So every chancellor has to be conscious of the fact that there's a balance to be struck between how much you can spend, and how much people will say, 'OK, if you've another pound to spend, remember me as well." | "So every chancellor has to be conscious of the fact that there's a balance to be struck between how much you can spend, and how much people will say, 'OK, if you've another pound to spend, remember me as well." |
| Earlier, Mr Darling conceded that the Treasury's fiscal rules were under review - saying it was right to allow borrowing to support the economy during a period of uncertainty. | Earlier, Mr Darling conceded that the Treasury's fiscal rules were under review - saying it was right to allow borrowing to support the economy during a period of uncertainty. |
| The Tories say this would mean the end of Gordon Brown's reputation for prudence. | The Tories say this would mean the end of Gordon Brown's reputation for prudence. |
| The BBC understands that officials are drafting a looser framework, so that the Treasury would not have to break the present borrowing limit of 40% of national income. | The BBC understands that officials are drafting a looser framework, so that the Treasury would not have to break the present borrowing limit of 40% of national income. |
| The rules were laid down by Mr Brown as chancellor, after Labour came to power in 1997. He promoted them as evidence of the prudent way he was running the economy. | The rules were laid down by Mr Brown as chancellor, after Labour came to power in 1997. He promoted them as evidence of the prudent way he was running the economy. |
| But it is predicted these will be breached as the government faces an £8bn tax revenue shortfall, because of the slowdown on the High Street, the housing market stalling and a drop in company profits. | But it is predicted these will be breached as the government faces an £8bn tax revenue shortfall, because of the slowdown on the High Street, the housing market stalling and a drop in company profits. |
| Speaking earlier shadow chancellor George Osborne said: "It's basically the end of the Brown era of economics." | Speaking earlier shadow chancellor George Osborne said: "It's basically the end of the Brown era of economics." |
| Liberal Democrat Treasury spokesman Vince Cable described news of the Treasury's deliberations as "embarrassing, even humiliating" for the government. | Liberal Democrat Treasury spokesman Vince Cable described news of the Treasury's deliberations as "embarrassing, even humiliating" for the government. |
| Robert Chote, director of the Institute for Fiscal Studies, said the government should have rethought the rules "before the point at which it looks as though you are just about to break them". | Robert Chote, director of the Institute for Fiscal Studies, said the government should have rethought the rules "before the point at which it looks as though you are just about to break them". |