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 5 Version 6
Darling '£15bn spending cuts due' Darling '£15bn spending cuts due'
(about 1 hour later)
Alistair Darling is set to announce £15bn of Whitehall spending cuts over the next few years in his Budget.Alistair Darling is set to announce £15bn of Whitehall spending cuts over the next few years in his Budget.
The chancellor will also reveal the extent of the rise in public borrowing this year, possibly up to £160bn. Treasury sources said the chancellor would unveil £10bn of annual Whitehall efficiency savings from 2011/12, on top of £5bn already pledged from 2010/11.
Mr Darling will also reveal the extent of the rise in public borrowing this year, possibly up to £160bn.
Experts expect predictions for the economy to be revised down to make it the worst recession since 1945.Experts expect predictions for the economy to be revised down to make it the worst recession since 1945.
The Conservatives predicted the Budget would be a "day of reckoning" - but Gordon Brown insisted the recession was an "enormous opportunity" for the UK. Treasury sources said the extra £10bn in spending cuts would not mean reductions in services and personnel.
The Treasury has already said there will be £5bn of savings in the financial year 2010 to 2011. 'Day of reckoning'
Help for motorists? They added that Mr Darling believed such efficiency savings should be possible in the context of overall government spending of more than £500bn.
But Mr Darling is expected to announce that another £10bn will be found from the 2011-12 financial year onwards. But the Conservatives predicted Wednesday's Budget would be a "day of reckoning".
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 MP Lib Dems proposing £700 tax cut Recession an opportunity, says PM We don't think the chancellor has got room for a big fiscal boost Richard Lambert, CBI Lib Dems proposing £700 tax cut Recession an opportunity, says PM
This could see motorists receive a payment of £2,000 to trade in cars that are more than 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.
'Unsustainable''Unsustainable'
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.
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.
HAVE YOUR SAY Darling cannot afford to be generous although he will try to make it appear he is being Ted Wade, Sheffield Send us your comments HAVE YOUR SAY Darling cannot afford to be generous although he will try to make it appear he is being Ted Wade, Sheffield Send us your comments
Conservative MP Mark Field called Labour's figures "unsustainable".Conservative MP Mark Field called Labour's figures "unsustainable".
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.
"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".
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.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'
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.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.
"We have also got a scientific, intellectual and cultural genius. I believe we can harness these strengths."We have also got a scientific, intellectual and cultural genius. I believe we can harness these strengths.
"We have difficulties that we are overcoming, but we have also got enormous opportunities and challenges ahead.""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.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.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.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.
Jobs market
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