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Brown plans 'will force up taxes'
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Shadow chancellor George Osborne has accused Gordon Brown of deepening the economic downturn by trying to "spend his way out of recession".
Mr Osborne claimed Government plans to stimulate demand would result in a burden of debt which could take a decade or more to pay off.
The policy of borrowing more to pay for a state "spending splurge" was "a cruise missile aimed at the heart of the economy", which could force income tax up by 4p in the pound in the long run, he warned.
In a speech drawing dividing lines between Conservative and Labour approaches to the economic crisis, Mr Osborne branded the Prime Minister "irresponsible" for suggesting the Government can "borrow without limit" to stave off recession.
Voters now have a clear choice between future Labour tax hikes to repay huge national debt, or a Tory "responsible road to recovery" which will eventually bring down levies, he said.
But the spending splurge allegation was rejected as "absolutely wrong" by Mr Brown, campaigning for next week's by-election in Glenrothes. "What we are doing is making sure we take people fairly through a very difficult time, when national debt is low and we are able to borrow to do it," said the Prime Minister.
In his first speech since he acknowledged making mistakes over his contact with Russian tycoon Oleg Deripaska, Mr Osborne sought to put the "Yachtgate" row behind him.
He accused Mr Brown of abandoning fiscal responsibility in favour of the "failed and discredited" Keynesian demand management techniques which led to soaring inflation in the 1970s. Mr Osborne said this approach was the "weak, irresponsible choice" and would make it more difficult for the Bank of England to achieve a "sustained reduction in interest rates".
He said: "It saddles this generation and the next with a burden of debt that could take a decade or more to pay off," warned the shadow chancellor. "It means you end up spending more on paying debt interest than defending your country or educating your children. It means damaging tax rises at the very moment when you want to be reducing taxes to help the recovery."
And he added: "Gordon Brown's talk of a spending splurge tries to give the impression of activity and action, when in fact it is the road to economic ruin. It may even involve another 10p-style tax con, but under Gordon Brown everyone knows we will have higher taxes for many many years to come."
Reader views (3)
Far too much scare-mongering. The PM's plans make very good sense, and taxes won't need to rise at all.
- Keith Price, Luton, England, 31/10/2008 16:34
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Gordon Brown's plans to "spend his way out of recession" are the plans of a fool.
You only have to look at the millions of people saddled with credit card debts, who, because of Brown's poor planning for the future, now find themselves in an ever deepening financial hole, with bankruptcy the only way out.
We had one of the most thriving economies in the world when Brown took over our finances. Now look at us, a broken mess of a country, in which the man who broke it, has the audacity to say he can lead us back again.
Brown has had 11 years of leading, and now we, as a country are facing bankruptcy, and all because of this fool's incompetency?
- Peter Thurgood, London, UK, 31/10/2008 13:42
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BROWN persist on blaming everyone and everything other then himself for his imcompetence as chancellor and now as PM (un-elected).
Darling taking the flak and has his strings pulled still by a totally inept PM. No matter what the electorate think, we have to wait until the next general election. BROWN won't leave No.10 without dragging everyone down with him.
- Alec, West London, 31/10/2008 13:26
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