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Cameron steps up economy attack | Cameron steps up economy attack |
(9 minutes later) | |
Conservative leader David Cameron, has accused Gordon Brown of inflicting a "terrifying" debt crisis on Britain and called the VAT cut a "joke". | Conservative leader David Cameron, has accused Gordon Brown of inflicting a "terrifying" debt crisis on Britain and called the VAT cut a "joke". |
Mr Cameron told BBC Radio 4's Today that Mr Brown might as well have gone out and burnt the money and said he felt like "shaking the prime minister". | Mr Cameron told BBC Radio 4's Today that Mr Brown might as well have gone out and burnt the money and said he felt like "shaking the prime minister". |
He said he would set out plans to help savers in a speech later. | He said he would set out plans to help savers in a speech later. |
His criticisms came as both his party and Labour seek to gain the initiative over handling of the economic downturn. | His criticisms came as both his party and Labour seek to gain the initiative over handling of the economic downturn. |
'Debt crisis' | 'Debt crisis' |
Mr Cameron told the BBC: "These are extraordinary circumstances we are facing, very difficult circumstances and we have to be clear about the landscape." | Mr Cameron told the BBC: "These are extraordinary circumstances we are facing, very difficult circumstances and we have to be clear about the landscape." |
He said government had led the country into a "debt crisis" and the economic downturn was also a key factor. | He said government had led the country into a "debt crisis" and the economic downturn was also a key factor. |
FROM THE TODAY PROGRAMME More from Today programme | FROM THE TODAY PROGRAMME More from Today programme |
Calling on Mr Brown to "get with the programme" the Tory leader said what was needed was more saving than borrowing. | Calling on Mr Brown to "get with the programme" the Tory leader said what was needed was more saving than borrowing. |
"We shouldn't use this as an opportunity to tear up the market and go back to 1970s style interventionism," he said. | "We shouldn't use this as an opportunity to tear up the market and go back to 1970s style interventionism," he said. |
David Cameron will use his speech later to claim the longer Labour are in power, the worse the nation's financial situation will become. | David Cameron will use his speech later to claim the longer Labour are in power, the worse the nation's financial situation will become. |
The BBC's political editor Nick Robinson said he believed the Conservative announcement on savings may be to abolish taxes on savings for basic rate taxpayers. | The BBC's political editor Nick Robinson said he believed the Conservative announcement on savings may be to abolish taxes on savings for basic rate taxpayers. |
This would create a clear political dividing line, he added, between a Labour government committed to state intervention to inflate the economy and the Tories calling for a smaller state and tax cuts. | This would create a clear political dividing line, he added, between a Labour government committed to state intervention to inflate the economy and the Tories calling for a smaller state and tax cuts. |
HAVE YOUR SAYWe need to concentrate on supporting the wealth creating private sectorBenny, LondonSend us your comments | HAVE YOUR SAYWe need to concentrate on supporting the wealth creating private sectorBenny, LondonSend us your comments |
Meanwhile Gordon Brown has been discussing help for businesses trying to cope with the economic slowdown. | |
This is as a prelude to a three-day tour of England and Wales by the prime minister, which will culminate in a jobs summit in Downing Street next week. | This is as a prelude to a three-day tour of England and Wales by the prime minister, which will culminate in a jobs summit in Downing Street next week. |
'Better tomorrow' | |
Mr Brown said the UK was facing a "testing" year but that Labour's investment in areas such as housing and transport and its planned focus on creating jobs in new sectors of the economy was an "essential" response to the downturn. | |
"I believe with the right policies that we can build a better tomorrow while also immediately addressing the challenges we face today," he told a meeting of business groups and union leaders in London. | |
To do otherwise and to let the downturn run its course - the approach the prime minister has accused the Conservatives of taking - would be "socially divisive and economically mistaken". | |
"When markets fail the government has a responsibility to act." | |
The government also said it was mulling over further plans to encourage UK banks to raise lending to firms and households, with Chancellor Alistair Darling stating that pumping more state cash into banks was not the "first port of call". | The government also said it was mulling over further plans to encourage UK banks to raise lending to firms and households, with Chancellor Alistair Darling stating that pumping more state cash into banks was not the "first port of call". |
And Yvette Cooper, chief secretary to the Treasury, said: "David Cameron talks about the 1970s. The truth is the Conservatives are returning to the worst of Thatcherism in the early eighties with no support for jobs or the economy and cuts in public services as well. | And Yvette Cooper, chief secretary to the Treasury, said: "David Cameron talks about the 1970s. The truth is the Conservatives are returning to the worst of Thatcherism in the early eighties with no support for jobs or the economy and cuts in public services as well. |
"The Conservatives are repeating their mistakes of the past: if a timely fiscal stimulus of similar scale had been applied at the beginning of the 1990s recession, around 300,000 fewer jobs might not have been lost." | "The Conservatives are repeating their mistakes of the past: if a timely fiscal stimulus of similar scale had been applied at the beginning of the 1990s recession, around 300,000 fewer jobs might not have been lost." |