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Brown takes stimulus plan to US Brown denies split over economy
(20 minutes later)
UK prime minister Gordon Brown has played down suggestions of a rift between Europe and America on the best way to boost the global economy. Gordon Brown has played down reports of rifts with the Bank of England and between the EU and the US on the best way to boost the global economy.
On a US visit he said there was "far more agreement" than had been claimed. Speaking in the US the UK prime minister said there was "far more agreement" than had been claimed.
No country would be expected to come to the G20 summit with their detailed budgets for the coming year, he said. He said leaders were agreed on the need to look at the impact of action that had already been taken and look at "what should happen next".
Instead they would look at the impact of action taken and decide "what should happen next". "I see a consensus, not a disagreement on that," he said. He dismissed suggestions the London G20 summit would fail to reach agreements.
He dismissed suggestions the G20 summit in London might fail to come to any meaningful agreement. 'Co-ordinated approach'
There was a "determination" among world leaders to do "whatever it takes to make sure we can restore the economy to growth", he said at a question and answer session hosted by the Wall Street Journal.There was a "determination" among world leaders to do "whatever it takes to make sure we can restore the economy to growth", he said at a question and answer session hosted by the Wall Street Journal.
Mr Brown is visiting the US as part of his pre-G20 summit tour. He said he hoped the G20 would see agreements on help for central and eastern Europe, which had been hard hit by the economic crisis, a "continuation of a co-ordinated approach to fiscal and monetary policy" and international agreements on the supervision of the financial system.
His plans to revive the economy appear to have been broadly backed by US President Barack Obama, who backs a sustained stimulus, but Bank of England head Mervyn King has warned against more UK spending. G20 LONDON SUMMIT World leaders will meet next weekl in London to discuss measures to tackle the downturn. See class="" href="http://news.bbc.co.uk/2/hi/in_depth/business/2009/g20/default.stm"> our in-depth guide to the G20 summit.The G20 countries are Argentina, Australia, Brazil, Canada, China, France, Germany, India, Indonesia, Italy, Japan, Mexico, Russia, Saudi Arabia, South Africa, South Korea, Turkey, the United Kingdom, the US and the EU. class="" href="/1/hi/business/7921385.stm"> Q&A: G20 Summit class="" href="/1/hi/world/europe/7951418.stm"> EU chokes on economic rescue class="" href="/1/hi/uk_politics/7960507.stm"> Europe 'must lead downturn fight'
Downing Street says there is no rift between the PM, the chancellor and Mr King over fiscal policy. Some progress had already been made on getting tax havens to agree to share tax information on request and there had already been "the biggest fiscal stimulus in history" and big interest rate cuts, he said.
The prime minister's spokesman said he "does not recognise the reports of a split". "Nobody is suggesting that people go to the G20 meeting and put on the table the budget they are going to have for the next year," he said.
His spokesman said any decisions on a fiscal stimulus would be taken by the chancellor in the Budget. Instead he believed they needed to look at, together, what had been done and its effects before deciding what should happen next.
Fiscal boost "I see a consensus, not a disagreement, on that," he said.
He also played down comments made by Governor of the Bank of England Mervyn King, that the government should be cautious about a further fiscal stimulus.
Stimulus plans
He said that what was at issue was whether people were prepared to do what was necessary to resume growth in economy.
"If you put that question to the Governor of the Bank of England he will say, as he said when he signed the G20 communique, that you have to take whatever action is necessary for growth," he said.
Mr Brown repeated his call for a "worldwide fiscal and monetary stimulus" at the European Parliament on Tuesday.Mr Brown repeated his call for a "worldwide fiscal and monetary stimulus" at the European Parliament on Tuesday.
The government has lost all credibility when it comes to fiscal stimuli Vince CableLiberal Democrats King warns against more spending
The prime minister is touring three continents ahead of next week's G20 summit, calling on governments to back plans for possible further stimulus action.The prime minister is touring three continents ahead of next week's G20 summit, calling on governments to back plans for possible further stimulus action.
G20 LONDON SUMMIT World leaders will meet next weekl in London to discuss measures to tackle the downturn. See class="" href="http://news.bbc.co.uk/2/hi/in_depth/business/2009/g20/default.stm"> our in-depth guide to the G20 summit.The G20 countries are Argentina, Australia, Brazil, Canada, China, France, Germany, India, Indonesia, Italy, Japan, Mexico, Russia, Saudi Arabia, South Africa, South Korea, Turkey, the United Kingdom, the US and the EU. class="" href="/1/hi/business/7921385.stm"> Q&A: G20 Summit class="" href="/1/hi/world/europe/7951418.stm"> EU chokes on economic rescue class="" href="/1/hi/uk_politics/7960507.stm"> Europe 'must lead downturn fight' And his plans to revive the economy appear to have been broadly backed by US President Barack Obama, who backs a sustained stimulus.
In an article - published in newspapers around the world - President Obama said he wanted to see bold action to kick start the global economy, including what he called a "robust" and "sustained" fiscal stimulus.In an article - published in newspapers around the world - President Obama said he wanted to see bold action to kick start the global economy, including what he called a "robust" and "sustained" fiscal stimulus.
And in a speech in Washington DC he said his plan was based on creating new jobs, rejuvenating the housing market, and creating new liquidity and lending by the banks. And in a speech in Washington DC he said all countries must share the burden of rescuing the global economy from its worst crisis in decades.
All countries must share the burden of rescuing the global economy from its worst crisis in decades, he added. "All of us are going to have to take steps in order to lift the economy," Mr Obama said.
"All of us are going to have to take steps in order to lift the economy," he said.
"We don't want a situation in which some countries are making extraordinary efforts and other countries aren't, with the hope that somehow the countries that are making those important steps, lift everybody up.""We don't want a situation in which some countries are making extraordinary efforts and other countries aren't, with the hope that somehow the countries that are making those important steps, lift everybody up."
But Czech prime minister Mirek Topolanek, who lost a "no confidence" vote in his own parliament on Tuesday, suggested the US recovery plans were the "way to hell".But Czech prime minister Mirek Topolanek, who lost a "no confidence" vote in his own parliament on Tuesday, suggested the US recovery plans were the "way to hell".
Mr Brown addressed the European Parliament in Strasbourg on Tuesday. The tour will also take him to Brazil and Chile. 'Lost credibility'
'Heavily indebted' Bank of England head Mervyn King warned against more UK spending, given the high levels of UK debt as a result of recent stimulus packages.
He will later take part in another question and answer session, with students at New York university, before going on to hold talks with UN secretary general Ban Ki-moon.
The government has lost all credibility when it comes to fiscal stimuli Vince CableLiberal Democrats King warns against more spending
On Tuesday Mervyn King, the governor of the Bank of England, had cautioned against further significant government spending to stimulate the economy.
Given the high levels of UK debt as a result of recent stimulus packages, Mr King questioned the wisdom of increasing debt by spending more.
But he did say that there was room for further "targeted and selected measures" in some areas of the economy.
The remarks have been interpreted as a warning to Mr Brown, who has been pressing the case for wealthy countries to bring forward big fiscal stimulus packages to refloat the economy.The remarks have been interpreted as a warning to Mr Brown, who has been pressing the case for wealthy countries to bring forward big fiscal stimulus packages to refloat the economy.
But former Paymaster General Geoffrey Robinson, a close ally of Mr Brown, said there was a "very good relationship" between the governor and the PM. Shadow chancellor George Osborne said: "The governor is sending a very clear warning that this country cannot borrow its way out of debt.
He said people were "misunderstanding what Gordon is trying to do" - saying the prime minister was simply planning ahead and doing everything possible to restore confidence, part of which was reassuring people he was "ready and willing to take action when necessary".
However shadow chancellor George Osborne said the governor's comments were a vindication of Conservative Party policies.
Mr Osborne said: "The governor is sending a very clear warning that this country cannot borrow its way out of debt.
"We are already heavily indebted and plans for a second stimulus package, which Gordon Brown has been talking up, should not go ahead.""We are already heavily indebted and plans for a second stimulus package, which Gordon Brown has been talking up, should not go ahead."
Liberal Democrat Treasury spokesman Vince Cable said: "The government has lost all credibility when it comes to fiscal stimuli since it wasted £12.5bn on an ineffective and temporary VAT cut.Liberal Democrat Treasury spokesman Vince Cable said: "The government has lost all credibility when it comes to fiscal stimuli since it wasted £12.5bn on an ineffective and temporary VAT cut.
"Any fiscal stimulus will have to be repaid in the future and so should encourage growth today as well as creating assets for the long term, neither of which the VAT cut has achieved.""Any fiscal stimulus will have to be repaid in the future and so should encourage growth today as well as creating assets for the long term, neither of which the VAT cut has achieved."
Mr Brown addressed the European Parliament in Strasbourg on Tuesday. The tour will also take him to Brazil and Chile.
He will later take part in another question and answer session, with students at New York university, before going on to hold talks with UN secretary general Ban Ki-moon.