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/7701201.stm
The article has changed 6 times. There is an RSS feed of changes available.
| Version 2 | Version 3 |
|---|---|
| Osborne blasts Brown's borrowing | Osborne blasts Brown's borrowing |
| (40 minutes later) | |
| George Osborne has accused Gordon Brown of planning a "spending splurge" that will saddle two generations with debt. | |
| The shadow chancellor told the BBC attempts to "spend your way out of a recession" would only lead to "huge debt" and higher taxes in the future. | The shadow chancellor told the BBC attempts to "spend your way out of a recession" would only lead to "huge debt" and higher taxes in the future. |
| Instead the Tories would "target" tax help such as freezing council tax and payroll tax for small firms. | Instead the Tories would "target" tax help such as freezing council tax and payroll tax for small firms. |
| The prime minister says it is responsible to boost spending to "speed up economic activity". | The prime minister says it is responsible to boost spending to "speed up economic activity". |
| Instead of heavy public spending, Mr Osborne said the Conservatives would "put money direct into people's pockets" by freezing council and business taxes. | Instead of heavy public spending, Mr Osborne said the Conservatives would "put money direct into people's pockets" by freezing council and business taxes. |
| Tax freeze | Tax freeze |
| Ahead of a speech at the London School of Economics - his first since the row over his meetings with Russian billionaire Oleg Deripaska - Mr Osborne told BBC Radio 4's Today programme: "You can't spend your way out of recession. | Ahead of a speech at the London School of Economics - his first since the row over his meetings with Russian billionaire Oleg Deripaska - Mr Osborne told BBC Radio 4's Today programme: "You can't spend your way out of recession. |
| "Let the Bank of England do its job, by cutting interest rates, and offer targeted help by freezing the council tax, but also keeping people in work by, for example, cutting payroll taxes for small businesses. | "Let the Bank of England do its job, by cutting interest rates, and offer targeted help by freezing the council tax, but also keeping people in work by, for example, cutting payroll taxes for small businesses. |
| It is a tragedy that the world is prey to one volatile commodity Gordon Brown | It is a tragedy that the world is prey to one volatile commodity Gordon Brown |
| "And don't end up in a position where, because you have spent beyond control, borrowed without limit, you have saddled this economy with so much debt, that we spend a decade trying to get out from under the mountain of debt the government has left us with." | "And don't end up in a position where, because you have spent beyond control, borrowed without limit, you have saddled this economy with so much debt, that we spend a decade trying to get out from under the mountain of debt the government has left us with." |
| Liberal Democrat Treasury spokesman Vince Cable has been calling for a "drastic" cut in interest rates but Chancellor Alistair Darling has said it is a decision for the independent Bank of England. | Liberal Democrat Treasury spokesman Vince Cable has been calling for a "drastic" cut in interest rates but Chancellor Alistair Darling has said it is a decision for the independent Bank of England. |
| Mr Osborne will say in his speech that excessive borrowing would make it more difficult for the Bank of England to achieve "a sustained reduction in interest rates". | Mr Osborne will say in his speech that excessive borrowing would make it more difficult for the Bank of England to achieve "a sustained reduction in interest rates". |
| He will say it will mean spiralling debt interest payments and tax rises for years to come and argue that a "spending splurge ... is the road to economic ruin". | He will say it will mean spiralling debt interest payments and tax rises for years to come and argue that a "spending splurge ... is the road to economic ruin". |
| 'Low debt' | 'Low debt' |
| Asked about his spending plans in Edinburgh, Mr Brown told local business leaders on Friday the government had cut national debt as a proportion of national income over the past decade. | Asked about his spending plans in Edinburgh, Mr Brown told local business leaders on Friday the government had cut national debt as a proportion of national income over the past decade. |
| He added: "We have low national debt in this country. | He added: "We have low national debt in this country. |
| "In my view the only thing that you can do in circumstances where the economic activity that you need is not taking place in the market place at the level you want is to temporarily to make sure that you do something to increase that level of economic activity." | "In my view the only thing that you can do in circumstances where the economic activity that you need is not taking place in the market place at the level you want is to temporarily to make sure that you do something to increase that level of economic activity." |
| But he said you also needed to "make the right judgements" about where to spend the money in order to "make a difference" and said the government's recapitalisation of banks had made a difference and he hoped would eventually yield a return to the government. | But he said you also needed to "make the right judgements" about where to spend the money in order to "make a difference" and said the government's recapitalisation of banks had made a difference and he hoped would eventually yield a return to the government. |
| In the same speech he said "the energy problem" with oil prices had to be solved adding: "It is a tragedy that the world is prey to one volatile commodity, that can disrupt businesses, disrupt people's lives, by a trebling of prices, over a very short period of time, and interestingly enough, an industry run by a cartel - not run in a free market way at all. | In the same speech he said "the energy problem" with oil prices had to be solved adding: "It is a tragedy that the world is prey to one volatile commodity, that can disrupt businesses, disrupt people's lives, by a trebling of prices, over a very short period of time, and interestingly enough, an industry run by a cartel - not run in a free market way at all. |
| "And we've got to solve this energy problem because it's part of our climate change problems, but it's also part of this question about how affordable energy is for businesses and for individuals in the future." | "And we've got to solve this energy problem because it's part of our climate change problems, but it's also part of this question about how affordable energy is for businesses and for individuals in the future." |
| Meanwhile, a YouGov poll for the Daily Telegraph suggests the Conservatives' lead over Labour has fallen from 24 points to nine, putting the Tories on 42%, Labour on 33% and the Lib Dems on 15%. | Meanwhile, a YouGov poll for the Daily Telegraph suggests the Conservatives' lead over Labour has fallen from 24 points to nine, putting the Tories on 42%, Labour on 33% and the Lib Dems on 15%. |
| Liberal Democrat leader Nick Clegg will warn later the economic downturn could lead to a surge in cases of mental illness, triggered by unemployment and repossessions. | Liberal Democrat leader Nick Clegg will warn later the economic downturn could lead to a surge in cases of mental illness, triggered by unemployment and repossessions. |
| He will say: "At a time when the limited mental health services available on the NHS are already under immense strain, ministers must prepare now for this profound consequence of the recession." | He will say: "At a time when the limited mental health services available on the NHS are already under immense strain, ministers must prepare now for this profound consequence of the recession." |