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/7732871.stm
The article has changed 6 times. There is an RSS feed of changes available.
| Version 1 | Version 2 |
|---|---|
| Brown defends economy boost plan | Brown defends economy boost plan |
| (9 minutes later) | |
| Gordon Brown says it is important to act "now" to help people through the downturn - as the Tories say borrowing more will mean higher taxes later on. | Gordon Brown says it is important to act "now" to help people through the downturn - as the Tories say borrowing more will mean higher taxes later on. |
| Speaking alongside EC president Jose Manuel Barroso he said many experts backed a "fiscal stimulus" but said it should be "temporary and affordable". | |
| Business Secretary Lord Mandelson hinted at tax rises - "adjustments" - having to be made "some years ahead". | Business Secretary Lord Mandelson hinted at tax rises - "adjustments" - having to be made "some years ahead". |
| The Tories say the PM wants to "max out the nation's credit card". | The Tories say the PM wants to "max out the nation's credit card". |
| Chancellor Alistair Darling is widely predicted to unveil a series of tax-cutting measures in his pre-Budget report next week, along with increases in public spending, to create a "fiscal stimulus" to boost the economy. | Chancellor Alistair Darling is widely predicted to unveil a series of tax-cutting measures in his pre-Budget report next week, along with increases in public spending, to create a "fiscal stimulus" to boost the economy. |
| 'Necessary action' | 'Necessary action' |
| But the Conservatives say the tax cuts will be unfunded - paid for by further borrowing, which shadow chancellor George Osborne warned at the weekend could create "a proper sterling collapse". | But the Conservatives say the tax cuts will be unfunded - paid for by further borrowing, which shadow chancellor George Osborne warned at the weekend could create "a proper sterling collapse". |
| Sterling has lost more than a quarter of its value against the dollar and hit a near-record low against the euro. | Sterling has lost more than a quarter of its value against the dollar and hit a near-record low against the euro. |
| On Monday business group the CBI warned that the UK's recession would be tougher and longer than first thought and suggested unemployment could rise from 1.8m to 2.9m by 2010. | On Monday business group the CBI warned that the UK's recession would be tougher and longer than first thought and suggested unemployment could rise from 1.8m to 2.9m by 2010. |
| We need to focus on the economics here, concentrating on what the government needs to do now in order to make this recession as short and as painless as possible Lord MandelsonBusiness secretary | We need to focus on the economics here, concentrating on what the government needs to do now in order to make this recession as short and as painless as possible Lord MandelsonBusiness secretary |
| Asked whether it was rash to call for more borrowing when taxes would inevitably have to rise later, the prime minister said it was "right that we take the necessary action today". | Asked whether it was rash to call for more borrowing when taxes would inevitably have to rise later, the prime minister said it was "right that we take the necessary action today". |
| He said many experts supported a fiscal stimulus - which meant "helping families and helping businesses now through this difficult position". | He said many experts supported a fiscal stimulus - which meant "helping families and helping businesses now through this difficult position". |
| "As long as we have a medium term framework for fiscal sustainability then this is the right thing to do," he said. | "As long as we have a medium term framework for fiscal sustainability then this is the right thing to do," he said. |
| Interest rates | Interest rates |
| He also said he believed Britain was "better placed" than it had been in the 1990s to deal with a recession as interest rates were low and employment levels high. | |
| Earlier Lord Mandelson said putting up taxes or cutting spending would "make things even worse" - so to deliver a "fiscal stimulus", borrowing would have to increase. | Earlier Lord Mandelson said putting up taxes or cutting spending would "make things even worse" - so to deliver a "fiscal stimulus", borrowing would have to increase. |
| They are trying to govern by propaganda and just give you one side of the picture Alan DuncanConservatives | They are trying to govern by propaganda and just give you one side of the picture Alan DuncanConservatives |
| The alternative was to "watching the recession grow and doing nothing about it," he said. | The alternative was to "watching the recession grow and doing nothing about it," he said. |
| He said taxes may be cut in the "immediate term" while a "medium term adjustment" would be "some years ahead". | He said taxes may be cut in the "immediate term" while a "medium term adjustment" would be "some years ahead". |
| Challenged that it would mean taxes going up after the next general election - when the Conservatives could be in power - he replied: "Rather than talk politics I think we need to focus on the economics here, concentrating on what the government needs to do now in order to make this recession as short and as painless as possible." | Challenged that it would mean taxes going up after the next general election - when the Conservatives could be in power - he replied: "Rather than talk politics I think we need to focus on the economics here, concentrating on what the government needs to do now in order to make this recession as short and as painless as possible." |
| 'Absolutely outrageous' | 'Absolutely outrageous' |
| But shadow business secretary Alan Duncan said Lord Mandelson had confirmed what Mr Brown would not - that taxes would rise. | But shadow business secretary Alan Duncan said Lord Mandelson had confirmed what Mr Brown would not - that taxes would rise. |
| "They are trying to govern by propaganda and just give you one side of the picture whilst postponing the consequences of the other side of the picture. That is why I think that what they are doing is dangerous and deceitful." | "They are trying to govern by propaganda and just give you one side of the picture whilst postponing the consequences of the other side of the picture. That is why I think that what they are doing is dangerous and deceitful." |
| He said it was a judgement call as to "whether you pour debt on debt now, for what could be an illusory stimulus which causes a lot of pain later, or whether you take a long-term fiscally responsible view as we are doing, which looks at the British economy over more than just the next few months". | He said it was a judgement call as to "whether you pour debt on debt now, for what could be an illusory stimulus which causes a lot of pain later, or whether you take a long-term fiscally responsible view as we are doing, which looks at the British economy over more than just the next few months". |
| The Liberal Democrats' Treasury spokesman Vince Cable says any tax cuts have to be "substantial" - in the region of £15bn-£20bn - if it was to get people spending and restore confidence. | The Liberal Democrats' Treasury spokesman Vince Cable says any tax cuts have to be "substantial" - in the region of £15bn-£20bn - if it was to get people spending and restore confidence. |
| He also said that the government's recapitalisation of banks, which he supported, was running into some problems. | He also said that the government's recapitalisation of banks, which he supported, was running into some problems. |
| He said: "Last week, Alistair Darling said that there would be no government directors of the semi-nationalised banks. | He said: "Last week, Alistair Darling said that there would be no government directors of the semi-nationalised banks. |
| "The banks have been given all this money, they're now going to be given a completely free rein and that's absolutely outrageous, because the banking system is completely gummed up." | "The banks have been given all this money, they're now going to be given a completely free rein and that's absolutely outrageous, because the banking system is completely gummed up." |