Alistair Darling refuses to back NHS spending pledge - News - Evening Standard
       

Alistair Darling refuses to back NHS spending pledge

Alistair Darling today deepened the Cabinet dispute over spending when he refused to endorse the Health Secretary's pledge that the NHS budget will keep going up.

The Chancellor refused four times in a radio interview to say Andy Burnham was right to insist health spending would continue rising after 2011.

Instead he made clear he will make decisions in the next spending review, expected before the election.

"I quite deliberately said at the Budget that I was not going to make allocations in individual departments after 2011 now because of the uncertainty over the economy," he said on BBC radio.

His words were in marked contrast with Mr Burnham, one of the ministers pushing for an immediate commitment to higher NHS spending from 2011 to put the Conservatives on the spot.

He said in a TV interview last week: "I am committing to you that this budget remains and I am also committing to you, in the way that the Prime Minister has, that we will continue to maintain growth in health spending in the following period."

Independent analysts say that if NHS spending rises other departments will have to shoulder 10 per cent cuts.

In his Mansion House speech tonight to the City, the Chancellor is expected to affirm his determination to "live within our means" by putting pressure on Whitehall spending budgets over the next five years.

He will also defend the tripartite system of financial regulation established by Gordon Brown a decade ago, despite criticism it failed to avert the banking crisis.

Mr Darling will say that the first line of defence in future must be by banks raising their leadership rather than relying on a new regulator.

The Conservatives are calling for major regulation changes, including greater powers for the Bank of England.

The tripartite system relies on the Financial Services Authority, the Treasury and the Bank of England to oversee banks.

In his interview, Mr Darling denied his approach was weaker than that of Barack Obama, who was today unveiling plans for tougher regulation in the United States.

They included the Federal Reserve taking over companies whose collapse could damage the financial system and executives' pay and bonuses being capped.

Comments

Don't Miss
Rock star: Erin Wasson

Rock star

Erin Wasson is the ultimate anti-supermodel
Maybe it’s because she’s a Londoner … Happy anniversary, Ma’am

Happy anniversary

The monarchy has become stronger and more respected in the past 60 years
Victoria Coren: My obsession with children, five proposals a week and why David and I are no power couple

Victoria Coren

David Mitchell and I are no power couple
The Royal Academy of Arts Summer Exhibition preview party

Summer party

Stars at the The Royal Academy of Arts
London gets ready for the Diamond Jubilee - in pictures

Diamond Jubilee

London gets ready - in pictures
The Glamour Awards - stars turn on the style

Glamour Awards

Stars turn on the style
Duchess of Cambridge is pretty in pink at her first Buckingham Palace garden party

Garden party

Duchess of Cambridge is pretty in pink
FIRST review of Ridley Scott's latest sci-fi blockbuster Prometheus

First review

Is Ridley Scott's Prometheus any good?
Fair-weather goths

Fair-weather goths

The sultry shades of summer darks are coming out of the shadows
Dog save the Queen: Corgis surge in popularity

Dog save the Queen

Corgis surge in popularity