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Clash: George Osborne came under attack from Lord Mandelson

Tory plans for cuts are cross-dressing, says Lord Mandelson

Paul Waugh, Deputy Political Editor
11.08.09

Lord Mandelson launched an attack on George Osborne today, warning that Tory plans to cut public spending were “laughable” and “irresponsible”.

In a move that revived memories of last summer's Yachtgate clash, the Business Secretary hit out as the shadow chancellor claimed the Tories were now the best party to protect public services.

Mr Osborne made a speech declaring that Labour was poised to make deep cuts in education and other front-line services because it had failed to implement money-saving reforms.

The Tories, not Labour, were the most “progressive” party in the UK, he told Tony Blair's former favourite think tank Demos. Mr Osborne also said today that the “bulk” of Labour's debt mountain would have to be repaid through “spending restraint” rather than tax rises.

But Lord Mandelson said Mr Osborne's claims were risible. “I think my old friend George Osborne is involved in a bit of political cross-dressing here and I don't think it's going to fool anyone,” he said. Moves to cut the public debt were needed once the recession was over, but cutting billions from spending now would have a serious impact on firms, jobs and public services.

“Would they really consider it would be progressive to do that, with the economic and human consequences that their actions would have now? At one level it is laughable. At another, I think it is frankly irresponsible for them even to put forward these ideas.” Lord Mandelson said that the heart of public services would be “ripped out by the Conservatives through their spending cuts if they were given half a chance”.

He exacted his revenge against Mr Osborne last summer after the shadow chancellor claimed Lord Mandelson had “dripped poison” against Gordon Brown when the pair met in Corfu.

The peer then highlighted Mr Osborne's links to Russian billionaire Oleg Deripaska. Mr Osborne told BBC Radio 4's Today programme: “The bulk of dealing with this huge debt crisis has to come from spending restraint because people should not be overtaxed to pay for Labour's overspending.”

Reader views (14)

 Add your view

I think George and Mandy make a lovely couple.

- Steve S, London

Mandelson is a disgrace and he is laughable he has no credance at all all he thinks about is himself he is not elected he is not anwerable to parliament or us he is laughing at all of us with his many boyfriends and arrogant friends he stays with. At least Osborne is trying everyone knows we will have to pay dearly for what Labour has done and remember they have put us in this position. If VAT does go up it is a tax you choose to pay if he buy the item or whatever and usually vat on energy bills is low. If income tax goes up you have no choice it is taken from you at source.The Tories have policies and I do not blame them for playing their cards close to their chests all Mandelson wants them to do is tell them their plans so that they can take them as their own that is why Mandelson critising Osborne so much and the other Tories he is trying to get them to give him their plans think about it.Remember Labour especially Blair speaks as a Tory everyone votes for him then he acts as a Leftie socialist. The Tories are not like Labour it is Labour acting like the Tories just so as you will all vote for them.

- Jacqui Williams, peterborough cambs

Meddlesum really takes the biscuit for being "laughable" and "irresponsible".

Get the old sleaze bag out of my sight.

- Reuben Camara, Republic of Morecambe, UK

The Conservatives introduced VAT in 1973. They have raised the rate many times afterwards without ever saying they would. Direct denials and even manifesto promises on VAT have been broken within a year of election. The scope of VAT has also been widened again and again - they even put VAT on incontinence pads! They opposed Labour's recent VAT cut.

Labour by contrast has NEVER increased the general rate of VAT, only reduced it. VAT is a Tory tax and they always deny that they plan to raise it, but always do.

- George, Surrey, UK

Hello London,
It is we the tax-payer who bail out private enterprize when they need help, and it we the tax-payer that will get the balance right.
It is because Governments have no money, it it our money that is collected in TAX that pays the way forward everytime.
No matter who is in POWER we have no control over tax hikes, but it no use worrying about it, just get on with it if you can afford it,
no matter what is is you want do it. There is no use saving for a rainny day, tried that with my private pension and the robbing gits had that as well.
My Grandfather once said to me, don't buy a pension, don't buy a house, don't buy insurance, just rent a property and live, and when your old and infirm, you'll get looked after, and at the end of the day you can't take it with you?.
I think there is logic in there somewhere don't you?.

- John L., Scarborough N.YKS. England. U.K.

I suspect most of us are looking forward to a real old- fashioned get-down-and-dirty General Election. But is it just me, or do others detect that distinct odour of fear and twitching bottles emanating from New Labour's rabble of halfwits, chancers and charlatans?

Bring it on, McMitty, and soon!

- Ted, London

osborne has done this before - disputing policy decisions with hid Party leader. Who are we to believe ? I preferred him when he was just annoying us all with his gross abd outrageous expenses claims.

- Keith Price, Luton England

I suspect most of us are looking forward to a real old- fashioned get-down-and-dirty General Election. But is it just me, or do others detect that distinct odour of fear and twitching bottles emanating from New Labour's rabble of halfwits, chancers and charlatans?

Bring it on, McMitty, and soon!

- Ted, London

I'm surprised it is only 20% he's proposing, given the very dire financial situation we are in.

- John Smith, Londonistan, EUSSR

More sophisticated than that Roz.

Float a very unpopular idea then let people see how generous you are when you announce a merely unpopular one.

- Mike Newland, London, England

Osborne is a tax-dodger who owes Her Majesty £55,000 CGT out of his vast fortune.

- Neil, London, London UK

Never mind the secret plans,have the Conservative Party got any plans for anything?

- Colin, Bristol

Bring back purchase tax; that way only luxuries are taxed; and things like utilities, food, and essentials are not taxed at all.

Or would that be too civilised and moral for any future government?

- Mickinlondon, london.

George, Luv: for pity's sake change your colourist and go to the gym - and stop doing NuLabour's trick of anonymously floating the idea in the public domain and then disowning it when it proves unpopular.

- Roz, France


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