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Crisis requires change - Cameron Crisis requires change - Cameron
(10 minutes later)
Britain must be prepared for a "major culture change" if the crisis in the public finances is to be tackled, David Cameron has said.Britain must be prepared for a "major culture change" if the crisis in the public finances is to be tackled, David Cameron has said.
The Conservative leader said government would have to operate differently if the "horrific deficits" announced in Wednesday's Budget were to be tackled.The Conservative leader said government would have to operate differently if the "horrific deficits" announced in Wednesday's Budget were to be tackled.
He was prepared to take tough decisions on public spending, in contrast with Labour's "dishonest" approach.He was prepared to take tough decisions on public spending, in contrast with Labour's "dishonest" approach.
Labour has accused the Conservatives of planning "savage cuts" in expenditure.Labour has accused the Conservatives of planning "savage cuts" in expenditure.
'Dishonest''Dishonest'
The Institute of Fiscal Studies says the UK is set for the sharpest fall in real public spending since the 1970s as the government seeks to bring the public finances back into balance by 2018.The Institute of Fiscal Studies says the UK is set for the sharpest fall in real public spending since the 1970s as the government seeks to bring the public finances back into balance by 2018.
The independent think-tank forecast overall public spending would fall by 0.1% annually in real terms from 2011 to 2014.The independent think-tank forecast overall public spending would fall by 0.1% annually in real terms from 2011 to 2014.
It means the whole way the government operates is going to have to change David Cameron It means the whole way the government operates is going to have to change David Cameron class="" href="/today/hi/today/newsid_8015000/8015817.stm">Michael Portillo on Cameron's options
Chancellor Alistair Darling said on Wednesday borrowing would total nearly £600bn in the next four years but defended the levels as necessary to support the economy through the recession.Chancellor Alistair Darling said on Wednesday borrowing would total nearly £600bn in the next four years but defended the levels as necessary to support the economy through the recession.
He has said tough decisions will have to be taken on public spending - he has said growth in public spending will slow to 0.7% next year - but has not accepted that there will be cuts in frontline services after 2011.He has said tough decisions will have to be taken on public spending - he has said growth in public spending will slow to 0.7% next year - but has not accepted that there will be cuts in frontline services after 2011.
Mr Cameron told BBC Radio 4's Today programme that the chancellor had been "dishonest" about the realities of the economic situation and his growth forecasts, on which the government is basing its public spending plans, were "probably junk".Mr Cameron told BBC Radio 4's Today programme that the chancellor had been "dishonest" about the realities of the economic situation and his growth forecasts, on which the government is basing its public spending plans, were "probably junk".
Ministers needed to "roll up their sleeves" and get to grips with the task of reducing the growth in public spending now.Ministers needed to "roll up their sleeves" and get to grips with the task of reducing the growth in public spending now.
"The success or failure of a Conservative government, if one is elected, is going to be whether we deal with this enormous problem that we have," he said."The success or failure of a Conservative government, if one is elected, is going to be whether we deal with this enormous problem that we have," he said.
"It means the whole way the government operates is going to have to change. It means ministers actually being rewarded on the basis of how they can save money rather than spend it.""It means the whole way the government operates is going to have to change. It means ministers actually being rewarded on the basis of how they can save money rather than spend it."
'Culture change''Culture change'
Mr Cameron said the Conservatives had identified three areas in which savings should be made.Mr Cameron said the Conservatives had identified three areas in which savings should be made.
Projects such as the ID cards scheme and the Contact Point child protection database should be scrapped, the tax credit system should be scaled back and public sector pay needed to be tackled.Projects such as the ID cards scheme and the Contact Point child protection database should be scrapped, the tax credit system should be scaled back and public sector pay needed to be tackled.
FROM THE TODAY PROGRAMME More from Today programmeFROM THE TODAY PROGRAMME More from Today programme
He would not be drawn on other potential spending cuts that would be needed if the Tories came to power.He would not be drawn on other potential spending cuts that would be needed if the Tories came to power.
But he said there would have to be a "massive culture change" in the UK as the government strived to get "more for less" out of the public services.But he said there would have to be a "massive culture change" in the UK as the government strived to get "more for less" out of the public services.
"The British public is going to want a lot more transparency about where their money goes," he stressed."The British public is going to want a lot more transparency about where their money goes," he stressed.
Mr Cameron said he opposed the 50p tax rate on high earners proposed by Labour but it would have to take its place "in the queue" of tax changes the Conservatives wanted to make.Mr Cameron said he opposed the 50p tax rate on high earners proposed by Labour but it would have to take its place "in the queue" of tax changes the Conservatives wanted to make.
London Mayor Boris Johnson and some other Tories have called on the party to scrap the 50p rate but the leadership have said this would not be a priority and they want to focus reducing the tax burden for those on low and middle incomes.London Mayor Boris Johnson and some other Tories have called on the party to scrap the 50p rate but the leadership have said this would not be a priority and they want to focus reducing the tax burden for those on low and middle incomes.
Conservative MP Peter Luff told the Financial Times the 50p tax plan was "a trap" set by Gordon Brown.Conservative MP Peter Luff told the Financial Times the 50p tax plan was "a trap" set by Gordon Brown.