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Tough choices ahead, Tories warn Tough choices ahead, Tories warn
(about 2 hours later)
David Cameron has warned an incoming Tory government will have to make "tough choices" on public spending.David Cameron has warned an incoming Tory government will have to make "tough choices" on public spending.
And he said cutting public debt - not taxes - will be his top priority, in a keynote speech on the economy. And he said cutting public debt - not taxes - would be his top priority, in a keynote speech on the economy.
Mr Cameron said a "credible strategy" to bring the public finances under control was essential for recovery.Mr Cameron said a "credible strategy" to bring the public finances under control was essential for recovery.
He also attacked the "culture of quango fat cats" and criticised the £417,581 salary of media watchdog Ofcom's chief executive.He also attacked the "culture of quango fat cats" and criticised the £417,581 salary of media watchdog Ofcom's chief executive.
Mr Cameron, who has ditched the Conservatives' commitment to match Labour's spending plans in the light of the economic downturn, stressed that his party would not behave like "turbo-charged, flint-faced accountants" and fiscal responsibility had to have a "social conscience."Mr Cameron, who has ditched the Conservatives' commitment to match Labour's spending plans in the light of the economic downturn, stressed that his party would not behave like "turbo-charged, flint-faced accountants" and fiscal responsibility had to have a "social conscience."
I am a Conservative who believes in lower taxes. But in today's fiscal circumstances, the priority must go to debt reduction David CameronI am a Conservative who believes in lower taxes. But in today's fiscal circumstances, the priority must go to debt reduction David Cameron
As official data suggested the UK's budget deficit had widened to £8.99bn in February, Mr Cameron said an incoming Conservative government would have to deal with "the worst set of public figures in our peacetime history".As official data suggested the UK's budget deficit had widened to £8.99bn in February, Mr Cameron said an incoming Conservative government would have to deal with "the worst set of public figures in our peacetime history".
He said without addressing public debt, investor confidence would be undermined and it could lead to a sharp increase in the cost of borrowing - meaning higher interest payments on mortgages and business loans.He said without addressing public debt, investor confidence would be undermined and it could lead to a sharp increase in the cost of borrowing - meaning higher interest payments on mortgages and business loans.
"I am a Conservative who believes in lower taxes. But in today's fiscal circumstances, the priority must go to debt reduction," he said."I am a Conservative who believes in lower taxes. But in today's fiscal circumstances, the priority must go to debt reduction," he said.
"Put simply, our overriding objective will need to change from sharing the proceeds of growth, to paying down our debt.""Put simply, our overriding objective will need to change from sharing the proceeds of growth, to paying down our debt."
Financial disciplineFinancial discipline
He said social reform plans would not be abandoned and controlling public spending in the long term would be achieved by reducing demands on the state by reducing family breakdown, benefit dependency and failing education. He said social reform plans would not be abandoned and controlling public spending in the long term would be achieved by reducing demands on the state by addressing family breakdown, benefit dependency and failing education.
But he said he would "examine" tax credits as he believed the original purpose of the system had been "confused to the point where tax credits can now reach people earning over £50,000 a year".
A "clear and compassionate philosophy" would underpin his plans but he warned: "There will be tough decisions to make, and there will be people to disappoint. I would never claim that controlling public spending can be a pain-free process."A "clear and compassionate philosophy" would underpin his plans but he warned: "There will be tough decisions to make, and there will be people to disappoint. I would never claim that controlling public spending can be a pain-free process."
Under a Conservative government the Treasury would be responsible for "driving financial discipline across government".Under a Conservative government the Treasury would be responsible for "driving financial discipline across government".
This would include "transparent" budgets for all spending over £25,000 and clauses in civil servants' contracts compelling them to spend responsibly. This would include clauses in civil servants' contracts compelling them to spend responsibly.
'Volatile' polls'Volatile' polls
He also criticised the "vast quangocracy that has mushroomed under Labour" and said he would "call time on the culture of quango fat cats".He also criticised the "vast quangocracy that has mushroomed under Labour" and said he would "call time on the culture of quango fat cats".
He compared the £417, 581 salary paid to the chief executive of the regulator Ofcom, with the £77,590 paid to the head of its predecessor, the Independent Television Commission, in 2001.He compared the £417, 581 salary paid to the chief executive of the regulator Ofcom, with the £77,590 paid to the head of its predecessor, the Independent Television Commission, in 2001.
Mr Cameron said increases in salaries for doctors and nurses was "money well spent" but the Ofcom figure was "a staggering example" of the growth in public sector salaries.Mr Cameron said increases in salaries for doctors and nurses was "money well spent" but the Ofcom figure was "a staggering example" of the growth in public sector salaries.
In an article for the Spectator on Thursday, Mr Cameron warned Conservatives the next general election was "far from won" and said the party must offer voters a "positive mandate for change". In a question and answer session after the speech, Mr Cameron was asked if he was saying he would not ring fence spending on departments like education and defence after 2010.
The election must be called by June 2010. A YouGov poll on Sunday suggested the Tories had a 10% lead. Mr Cameron said the Conservatives had announced what they would do this year - but were not making "detailed announcements" for future years.
On Sunday Douglas Alexander, the minister in charge of Labour's election planning, was asked about a YouGov poll in the Sunday Times that put the Tories ten points ahead of Labour on 41%. In an article for the Spectator on Thursday, Mr Cameron warned Conservatives the next general election, which must be called by June 2010, was "far from won" and said the party must offer voters a "positive mandate for change".
On Sunday Douglas Alexander, the minister in charge of Labour's election planning, was asked about a YouGov poll in the Sunday Times that put support for the Tories on 41% - 10 points ahead of Labour on 31%.
He told the BBC the polls were "very volatile" at the moment and he remained "pretty optimistic" about Labour's chances at the next general election.He told the BBC the polls were "very volatile" at the moment and he remained "pretty optimistic" about Labour's chances at the next general election.
He said he believed Labour had a "compass" for the way ahead while the Conservatives did not "have the solutions the country needs".He said he believed Labour had a "compass" for the way ahead while the Conservatives did not "have the solutions the country needs".