Brown 'over-inflated' G20 hopes

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Gordon Brown has come under fire from the Tories and Lib Dems for over-inflating expectations about what can be achieved at the G20 summit.

Leaders of the most powerful nations are close to agreeing a plan to fight recession at the London meeting.

But Tory leader David Cameron said Mr Brown's earlier hopes of success have proved groundless.

And Lib Dem Treasury spokesman Vince Cable said anyone hoping for a breakthrough would be disappointed.

"Unfortunately, the impression in the UK has been given that this is a once-and-for-all, save-the-world summit. It isn't and shouldn't be," Mr Cable told the BBC.

"There is a whole lot of very complex, long-term issues that have got to be kept going in future meetings."

Bankers' pay

He said no agreement would be reached at this summit on the "biggest issue of all", which he said was "how you keep demand going".

"And the problem here is partly the German reluctance to be dragged into another so-called fiscal stimulus but it's also the fact that the big surplus countries, China, Japan and Germany between them, of course want the rest of the world to lift their economies and they don't appear to be willing to make a contribution."

I want this G20 to succeed and I think it will succeed, but thankfully we are now talking about some realistic things that can happen, rather than building up dreams that couldn't David Cameron, Conservative leader

The G20 leaders are expected to tighten banking regulation and pledge to curb tax haven and bankers' pay.

There may also be a deal to "name and shame" countries that breach free-trade rules.

But Business Secretary Lord Mandelson earlier told the BBC there were still some issues to iron out, particularly over levels of funding for the IMF, regulation of tax havens and measures to boost global trade.

'Cruel deception'

It is understood that Gordon Brown wants to go further than some other leaders on these matters.

Lord Mandelson said: "Our prime minister is excessively ambitious in what he wants out of this summit.

"A good thing too, because there's absolutely no point in people just coming here and rehearsing old arguments restating old commitments."

Tory leader David Cameron attacked the prime minister for over-inflating expectations of what could be achieved.

He told BBC Radio 5 Live: "The whole New Labour phenomenon of pretending that levers can be pulled centrally that will lead to immediate things helping you is often a very, very cruel deception.

"And we have seen it in a small way with this G20. To start with Gordon Brown was describing it as a global new deal, a grand bargain - raising the expectations.

"I want this G20 to succeed and I think it will succeed, but thankfully we are now talking about some realistic things that can happen, rather than building up dreams that couldn't."

Both the Conservatives and Lib Dems are expected to issue statements on the G20 summit, when the official communique is issued later.