LONDON (Reuters) - The Conservatives would cut a big chunk of the budget deficit within four years if they win an election as expected next year, Conservative shadow chancellor George Osborne said on Saturday. Labour, behind the Conservatives in opinion polls with an election due by June 2010, laid out plans this week to halve the deficit -- set to near 13 percent of gross domestic product this year -- over four years. The Conservatives have said they would act faster than that, aiming to keep interest rates as low as possible for as long as possible to aid recovery.
LONDON (Reuters) - The Conservatives would cut a big chunk of the budget deficit within four years if they win an election as expected next year, Conservative shadow chancellor George Osborne said on Saturday.
Labour, behind the Conservatives in opinion polls with an election due by June 2010, laid out plans this week to halve the deficit -- set to near 13 percent of gross domestic product this year -- over four years.
The Conservatives have said they would act faster than that, aiming to keep interest rates as low as possible for as long as possible to aid recovery.
A Conservative government would, he says, put spending cuts before tax rises. "I am quite clear that the bulk of this has to come from curbing public spending. The Government overspent and overborrowed, it's not that we were undertaxed." Tory frontbenchers have been told to find substantial savings across the board. If Mr Osborne becomes Chancellor he intends to set up a "star chamber", including Cabinet ministers without spending departments, to decide where the axe should fall. Ministers would have to pitch to their colleagues for cash. "The Prime Minister and the Chancellor just hand out spending decisions. There is no collective bargaining. That's demeaning for government," he says. "What you need at a time of economic challenge is collective political will to deal with it." Would he like to save money by scrapping Trident? "We need to look across the board at getting value for money and that includes defence projects," he says. The BBC should get into the real world. "The salaries need to reflect the economic conditions. As and when they find savings, I would want that money to go back to licence-fee payers." Crossrail is less of a target. "I have a French view that these grands projets, when it comes to transport spending, are worth it. The [north-south] high-speed rail link is also enormously expensive, but I'd like to see it built. These big infrastructure projects will power the future." What about the third runway at Heathrow? "It's not going to happen."
A Conservative government would, he says, put spending cuts before tax rises. "I am quite clear that the bulk of this has to come from curbing public spending. The Government overspent and overborrowed, it's not that we were undertaxed."
Tory frontbenchers have been told to find substantial savings across the board. If Mr Osborne becomes Chancellor he intends to set up a "star chamber", including Cabinet ministers without spending departments, to decide where the axe should fall. Ministers would have to pitch to their colleagues for cash. "The Prime Minister and the Chancellor just hand out spending decisions. There is no collective bargaining. That's demeaning for government," he says. "What you need at a time of economic challenge is collective political will to deal with it."
Would he like to save money by scrapping Trident? "We need to look across the board at getting value for money and that includes defence projects," he says. The BBC should get into the real world. "The salaries need to reflect the economic conditions. As and when they find savings, I would want that money to go back to licence-fee payers."
Crossrail is less of a target. "I have a French view that these grands projets, when it comes to transport spending, are worth it. The [north-south] high-speed rail link is also enormously expensive, but I'd like to see it built. These big infrastructure projects will power the future." What about the third runway at Heathrow? "It's not going to happen."
What can I say, better late than never for the Tories to decide it's worth it to spend at least one penny of public money on high speed rail. En un viejo país ineficiente, algo así como España entre dos guerras civiles, poseer una casa y poca hacienda y memoria ninguna. -- Gil de Biedma
He has to cut defence but he won't. He needs to raise taxes on those most able to pay but he won't. He needs to tax City transactions but he won't.
so he's going to destroy the UK social security safety net while bleating that it's necessary pain to save jobs. The NHS will probably get gutted and private pensions will be wrecked again.
I would get angrier if that wasn't identical to what the conservatives dressed up as Labour would do; instead I just feel tired and helpless. We are becoming all of the bad bits of the USA, just what Brown and Cameron have always wanted. keep to the Fen Causeway
This would still increase the total government debt by 32% of GDP over the 4 years of a Tory administration.
To "cut debt" the Tories would have to come up with a way to expand GDP faster than Labour by at least 32% over 4 years. A tall order. En un viejo país ineficiente, algo así como España entre dos guerras civiles, poseer una casa y poca hacienda y memoria ninguna. -- Gil de Biedma
Important missing word... En un viejo país ineficiente, algo así como España entre dos guerras civiles, poseer una casa y poca hacienda y memoria ninguna. -- Gil de Biedma
