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/8007482.stm

The article has changed 11 times. There is an RSS feed of changes available.

Version 3 Version 4
Darling '£15bn spending cuts due' Darling '£15bn spending cuts due'
(about 2 hours later)
Chancellor Alistair Darling is expected to announce some £15bn of spending cuts over the next few years when he delivers his Budget statement. Alistair Darling is set to announce £15bn of Whitehall spending cuts over the next few years in his Budget.
He will say the money can be found by making Whitehall more efficient. The chancellor will also reveal the extent of the rise in public borrowing this year, possibly up to £160bn.
The Budget will reveal the extent of public borrowing this year, potentially more than £160bn. Experts expect predictions for the economy to be revised down to make it the worst recession since 1945.
The Conservatives say Wednesday's announcement will represent a "day of reckoning" amid the worst economic crisis for decades. The Conservatives predicted the Budget would be a "day of reckoning" - but Gordon Brown insisted the recession was an "enormous opportunity" for the UK.
The Treasury has already said that there will be £5bn of savings in the financial year 2010 to 2011. The Treasury has already said there will be £5bn of savings in the financial year 2010 to 2011.
Help for motorists?Help for motorists?
But Mr Darling is expected to announce that another £10bn will be found from the 2011-12 financial year onwards.But Mr Darling is expected to announce that another £10bn will be found from the 2011-12 financial year onwards.
A decision on including the car scrappage scheme - aimed at helping the ailing automobile industry - in the Budget has still not been finalised by the Treasury.A decision on including the car scrappage scheme - aimed at helping the ailing automobile industry - in the Budget has still not been finalised by the Treasury.
We need Alistair to inject some optimism, not just among Labour MPs of course, but in the wider economy Tom Harris, Labour MPWe need Alistair to inject some optimism, not just among Labour MPs of course, but in the wider economy Tom Harris, Labour MP
This could see motorists receive a payment of £2,000 to trade in cars that are a certain number of years old. This could see motorists receive a payment of £2,000 to trade in cars that are more than a certain number of years old.
Officials are still studying the detail of how such a scheme might work, but it is expected that a plan of some description will feature in Wednesday's announcement.Officials are still studying the detail of how such a scheme might work, but it is expected that a plan of some description will feature in Wednesday's announcement.
Shadow chancellor George Osborne has said the Budget, expected to confirm a likely 3% fall in growth in 2009, will "lay bare" Labour's economic failings.Shadow chancellor George Osborne has said the Budget, expected to confirm a likely 3% fall in growth in 2009, will "lay bare" Labour's economic failings.
"It will be a day of reckoning and I think you are going to see the chancellor forecast the longest recession that Britain has had since World War II," he said."It will be a day of reckoning and I think you are going to see the chancellor forecast the longest recession that Britain has had since World War II," he said.
In last autumn's pre-Budget report, the chancellor forecast the economy would contract by between 0.75% and 1.25% in 2009.In last autumn's pre-Budget report, the chancellor forecast the economy would contract by between 0.75% and 1.25% in 2009.
Experts believe he could now revise this to a projected drop in annual growth of between 3% and 3.5% - which would be the worst recession since 1945.Experts believe he could now revise this to a projected drop in annual growth of between 3% and 3.5% - which would be the worst recession since 1945.
'Unsustainable''Unsustainable'
However, Mr Darling is expected to say the economy will return to growth next year and gain further strength in 2011.However, Mr Darling is expected to say the economy will return to growth next year and gain further strength in 2011.
Conservative MP Mark Field called Labour's figures "unsustainable".Conservative MP Mark Field called Labour's figures "unsustainable".
He said: "Suddenly, you know, the true horror will really come to the fore. He said: "Suddenly the true horror will really come to the fore.
"And I think one of the difficulties is that people are so befuddled with these figures about trillions of pounds of overall debt and hundreds of billions of pounds of bailing out of banks."And I think one of the difficulties is that people are so befuddled with these figures about trillions of pounds of overall debt and hundreds of billions of pounds of bailing out of banks.
"Even by Labour's own figures it now looks as though, for the year ahead, they will be saying for every £4 they're spending, they're only going to be able to raise £3 in tax."Even by Labour's own figures it now looks as though, for the year ahead, they will be saying for every £4 they're spending, they're only going to be able to raise £3 in tax.
"And that's a huge thing. Think of everybody earning £30,000 a year spending £40,000 a year - well, it's simply not going to be sustainable"."And that's a huge thing. Think of everybody earning £30,000 a year spending £40,000 a year - well, it's simply not going to be sustainable".
Labour MP Tom Harris said the chancellor had to be upbeat, despite the difficult circumstances. Mr Brown told the Building Britain's Future conference at Loughborough University that unskilled workers could face difficulty in finding a job in future, given the nature of the changes to the economy, with the UK creating "value-added" products.
'Above the parapet''Above the parapet'
"I think it's very important he gives us some optimism, some cause for optimism," he said. The UK had to "build on our inherent strengths", the prime minister said: "We have, in Britain, an open economy. We are one of the greatest free-trade economies of the world.
"I think most of the economists who are putting their head above the parapet at the moment are saying that they expect the upturn to begin early next year. "We have also got a scientific, intellectual and cultural genius. I believe we can harness these strengths.
"And we need Alistair to inject some optimism, not just among Labour MPs of course, but in the wider economy." "We have difficulties that we are overcoming, but we have also got enormous opportunities and challenges ahead."
Liberal Democrat leader Nick Clegg meanwhile unveiled a shake-up of his party's tax plans, including raising the income tax threshold to earnings of £10,000 a year.
This would represent an annual saving of £705 for most workers, he added.
Mr Clegg said it was "nonsense" to say tax cuts could not be brought in during a recession because a "tax switch" was affordable", he said.
The Confederation of British Industry predicted a "slow and fragile" return to growth in spring next year.The Confederation of British Industry predicted a "slow and fragile" return to growth in spring next year.
Director-general Richard Lambert told BBC Radio 4's Today programme he thought the chancellor should do very little in the short term.Director-general Richard Lambert told BBC Radio 4's Today programme he thought the chancellor should do very little in the short term.
He said: "We don't think he's got room for a big fiscal boost. We think he should be doing things to help jobs, particularly [for] young people, who face a tough jobs market in the next year."He said: "We don't think he's got room for a big fiscal boost. We think he should be doing things to help jobs, particularly [for] young people, who face a tough jobs market in the next year."
Mr Lambert added: "The big question is what's he going to say about the medium term and how are we going to plug this big borrowing gap that's now building up?"Mr Lambert added: "The big question is what's he going to say about the medium term and how are we going to plug this big borrowing gap that's now building up?"
Meanwhile, the Ernst & Young Item Club predicted that the UK economy would shrink by 3.5% this year, but only by 0.1% in 2010.Meanwhile, the Ernst & Young Item Club predicted that the UK economy would shrink by 3.5% this year, but only by 0.1% in 2010.
Will efficiency measures restore the British economy? What would you like to see in Budget 2009? Send us your comments using the form below.Will efficiency measures restore the British economy? What would you like to see in Budget 2009? Send us your comments using the form below.
The BBC may edit your comments and not all emails will be published. Your comments may be published on any BBC media worldwide. Terms & ConditionsThe BBC may edit your comments and not all emails will be published. Your comments may be published on any BBC media worldwide. Terms & Conditions