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Osborne: Labour's borrowing plans are irresponsible
Paul Waugh, Deputy Political Editor31 Oct 2008
GEORGE OSBORNE lambasted Labour's "weak" and "irresponsible" borrowing plans today as he hit back at claims that he lacked the judgment to become Chancellor.
In his first major round of TV interviews since he was embroiled in the "yachtgate" row, Mr Osborne came out fighting with calls to lower interest rates and cut taxes to boost Britain.
The shadow chancellor spoke out ahead of a speech that sought to put clear dividing lines between the Tories and the Government on how to deal with the recession.
Mr Osborne admitted again that he had made a mistake in going on the yacht of Russian billionaire Oleg Deripaska this summer, but dismissed claims he sought a donation for the Tory party.
"I have been cleared by every inquiry or every body that might look at this, but I have admitted I made a mistake. I regret going on that boat," he said. In his speech to the LSE, Mr Osborne said that Gordon Brown's decision to opt for "borrowing without limit" made it more difficult for the Bank of England to achieve a sustained cut in interest rates over the long term.
Responding to the Standard's revelation yesterday that the Chancellor is being urged to produce surprise tax cuts in the pre-Budget report, Mr Osborne also warned against another Labour "tax con" similar to its 10p tax change.
He added that the Government's recent signals that it will let spending and borrowing soar had led to the collapse in the pound as Britain lost "the confidence of the international markets".
Mr Osborne claimed that Labour's Keynesian-style spending "splurge" was "the road to economic recession" and raised the spectre of the money markets refusing to lend the UK the cash requested by the Treasury.
In the clearest signal yet that the Tories have now abandoned their bipartisan approach to tackling the financial crisis, he hardened yet further his party's opposition to borrowing increases.
"There is a choice emerging between the political parties about how to tackle the recession. First there is the weak, irresponsible choice of borrowing without limit - the choice Gordon Brown seems to be making," he said.
"The other choice is the responsible road to recovery. That is the choice we have made. We will stick to fiscal responsibility. We will do everything possible to help the independent Bank of England cut interest rates."
Reader views (1)
This says it all for me:
When I was about 16, I remember I had obtained a little red book called 'The Thoughts of Chairman Mao.
'When my father saw me reading it and saying how I thought the left were for the ordinary people and all that.
He picked himself off the floor wiped the foam from round his mouth and said.
"Son I have never tried to stop your free thinking in any way. I have tried to leave you to develop your own thoughts, but if you remember only one thing. Labour will always leave office with the country in debt and in a worse state than when they came to power. No matter what they promise if you vote Labour you will live to regret it in the end"
This just was not him, so you never forget something like that.
I went on to vote Labour many years ago and did totally regret it as he had said.
Since then I have voted with my head.
Labour just do not understand about wealth.
They can only spend, never earn and it has been proved yet again.
Its fine having all these worthy ideas but if you do not create the wealth to pay for it you end up with nothing.
Its called the real world.
- John G, London UK, 31/10/2008 15:16
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