Morning:
8°c
Gordon Brown fired the starting gun for the general election campaign today with a keynote speech that claimed only he could be trusted to deliver economic recovery.
The Prime Minister told the TUC that David Cameron's spending cuts would delay recovery and condemn a generation of young people to Eighties-style unemployment.
“Let us have confidence that by working together and implementing the values that we believe in, we can together lead our country forward,” he declared.
The strongly confident theme was designed to lift a Labour government demoralised by recession, setbacks and doubts over Mr Brown's leadership. Mr Brown vowed to slash “low priority budgets” in a concession to critics urging him to rein in spending. He took a symbolic axe to the generous early retirement scheme for top civil servants.
But although the Prime Minister freely used the “C-word” — cuts — which had seemed banned from the Labour lexicon, most of his 35-minute speech was devoted to explaining why overall cutbacks would be wrong and could endanger the economic recovery.
“Labour will cut costs, cut inefficiencies, cut unnecessary programmes and cut low priority budgets,” Mr Brown said. “But when our plans are published in the coming months, people will see that Labour will not support cuts in the vital frontline services on which people depend.”
Mr Brown's speech drew polite applause from union activists, though some shook their heads angrily at the mention of cuts.
Mark Serwotka, the public services union leader, said it was “desperately disappointing” that Mr Brown had targeted civil servants rather than tax exiles for savings. “He wants to get rid of people on the cheap,” he said, warning of possible industrial action.
Bob Crow of the RMT said the speech signalled job cuts ahead.
But allies said Mr Brown felt he had found a dividing line with the Tories on the key issue of cuts and spending that would provide a platform to fight the general election, expected in May.
The Premier said he would save £500 million over three years by abandoning Whitehall's early exit programme for top civil servants.
Officials say the scheme, which lets mandarins quit in their fifties, often costs up to six times as much as simply paying their salaries until they retire at the standard Whitehall age of 60.
Tory hopes that the PM would perform a U-turn and promise deeper spending reductions were dashed.
In a speech in London, shadow chancellor George Osborne claimed: “Sooner or later Gordon Brown will have to hoist the white flag and actually say that public spending has to be cut. The biggest capitulation in recent British political history is coming and it's coming from Gordon Brown.”
Mr Brown suffered a blow with a poll showing that nearly half of voters believe that “literally anyone” from Labour would do a better job than him.
But Chancellor Alistair Darling backed him to stay as Labour's leader. Asked about the poll, he said: “Most people would like us to concentrate on things that will make a difference to their lives.”
Earlier the Bank of England governor, Mervyn King, announced that the recession was technically coming to an end with “signs that growth has resumed”.
But he warned that there was a “long hard road ahead” and families and firms would continue to feel the pain for some time.
He also said that inflation “is likely to be volatile” over the next year as it emerged that the Consumer Price Index was at its lowest level for nearly five years.
The Government's official measure of inflation fell from 1.8 per cent to 1.6 per cent last month. It was last at this level in January 2005 and has not been lower since November 2004.
Economists expect inflation to fall to about one per cent in the autumn before picking up over the winter, fuelled by the return of 17.5 per cent VAT. The Retail Prices Index, which includes property costs, is falling but less quickly. It fell by 1.3 per cent in August.
Reader views (19)
It's easy to slag Mr Brown down - I admit to having done so myself at times at the drop of a hat (and yes, I have thrown that hat down myself once or twice). Perhaps harshly at times. But the simple truth is that he is not a leader (as in, 'one who is trusted to guide his people with competence and in their best interests'). He is not a man who is trusted by those over whom he sits in authority. And while undoubtably smart, he is not generally seen to be at all wise.
The fact that his party chose him in particular to lead themselves and the country speaks volumes of the suitability of anyone else in that party to take his place.
Time to go, Mr Brown. Time to go, Labour Party. Spend your wilderness sojourn preparing for the time when the pendulum inevitably swings, and the Tories (yes, my lot!) get too sure of themselves as you have done. That will be your turn to pull the country back from the edge, just as is about to be done with you lot now. It's just a question of how far the majority swing vote allows the pendulum to sweep either way in the future. If only they can remember next time, and in times to come, that they should demand that promises used to buy their votes should really be redeemed early on in the life of a new parliament. Later is too late. Always. Witness the current antics of a dying government.
- Rogan, Irving, 16/09/2009 07:18
Report abuse
One in four people in the NE is without a job, we have a massive debt, poor roads and a failure to educate our young people to meet global competition. Mr Brown is well meaning, but has left the UK in a worse state. Labour will go down to a 1983 level defeat.
- Andrew, London, 15/09/2009 23:21
Report abuse
Has this Goon not realised yet that the majority of the populace see right through his totally dishonest rantings. Why does he not just do the proper thing (no not put a gun to his head), just go back quietly to Scotland and leave us to vote for who we want running this country and not ramming down our throats someone who slipped in through the Blair backdoor. Time to go Brown! You are incompetent, unwanted and doomed to the biggest election loss in the history of the Labour Party!. Oh and by the way, take Mandelson and the rest of your goons with you. Do them a favour and tell them to go quick and they might be able to get jobs as road sweepers in Scunthorpe if lucky. Sorry no expenses fiddling there.
- Clive, London, 15/09/2009 21:55
Report abuse
What a twit this man is. Does he take us for idiots? He was in charge of the books for ten years and he didn't see a crisis coming? Now he's put the UK in hock for a generation and over three million unemployed. And he was never voted in as Prime Minister in the first place. The size of his ego is incalculable. I'd bet my pension that he'll be booted out because of many things least of all people are outraged by his brazen attitude.
- Cyrjames, Berwick UK, 15/09/2009 21:51
Report abuse
Instead of "rallying call", why not just omit the first three letters? I'd be most intereted to hear where abouts in Brown's much vaunted moral compass it states "Thy shall not tell the truth".
- Minority Working Person, London/England, 15/09/2009 16:55
Report abuse
This economics "genius" sold most of our gold to China, during our "boom" years for less than £215 per unit and it is now worth over £1000 per unit. He is a complete disaster.
- Ricky, Hackney, London, 15/09/2009 16:52
Report abuse
Probably a silly question, but why do we have known inefficiencies and unnecessary programmes in the first place, and why should the eradication of such waste require a major policy speech from the PM?
We're being led down the road to disaster by a madman.
- David, Sale UK, 15/09/2009 16:49
Report abuse
What a sad, pathetic man. I'd feel sorry for him were it not for the terrible damage he has done to this country. I'm counting the days till we're rid of him and his cabal.
- R M, London, UK, 15/09/2009 16:48
Report abuse
As well as now admitting that he has to make cuts, he actually admits that some of the programmes that he agreed to implement are in fact "unnecessary". So why did we have them in the first place?
I should think that the most unnecessary item here is Brown himself, and he should be the first thing cut....out of our lives!
- Ronnie, Billericay England, 15/09/2009 16:47
Report abuse
There's only one place Zanulabour are going,and that's to oblivion,-they will be in the political wilderness for twenty years after this debacle,-all the freaks and spin doctors will be on the dole and nobody will want to read or touch their memoirs with a barge pole,-the marxist nightmare is drawing to a close,sadly most of these gangsters will escape prison.
- Constipated Sloth, Communist Britain., 15/09/2009 16:46
Report abuse
Has Broon resigned yet?
- St, London, 15/09/2009 16:45
Report abuse
Its all so easy to resolve - Plonker Brown, Election, Election, Election. (With apologies to Blair the illusionist)
- Alan, Essex, 15/09/2009 16:44
Report abuse
WHAT ARROGANCE! He permitted the banks to gamble with the nation's money by his "light touch" order to the FSA and now he says he is the only man capable of getting us out of trouble. If he was a child, you would let him try but his role is far too dangerous to let HIM try.
- Colin Macpherson, Gramat France, 15/09/2009 16:44
Report abuse
I agree with Alistair Darling- I want him to concentrate on the one thing that will make a massive difference to my life - tax cuts paid for by cuts in wasteful and reckless spending such as quangos, ID cards, MPs expenses, NHS computer systems etc.
- John Graham, london UK, 15/09/2009 16:43
Report abuse
This man reminds of of a bomber that blew you up then says he knows how to put things right. He was the cause of the explosion, he was the one who previously never tired of assuring us everything under him was good and boom and bust could never happen again. Yeothers were shouting waning and telluing him to his face he was wrong. Eminent men experts in their fields but he would not listen. Now he says we are safe in his hands. He is the only one who can sort out the mess. No he must go!
- Jas, Camberley UK, 15/09/2009 16:40
Report abuse
Civil Servants who take early retirement at the employer's request are entitled to pension enhancement of up to six and two thirds years added to their pension.
This is part of the Principle Civil Service Pension Classic Scheme rules, and Mr. Brown or anyone else cannot alter it.
There are different rules for recently appointed staff.
- John Jones, Westminster, 15/09/2009 16:26
Report abuse
Well,he should be able to get a job in comedy when he is booted out at the next election.
- Dave, london, 15/09/2009 16:25
Report abuse
What a failure. Gordon Brown had more than 10 years to prepare to be Prime Minister and all we get is tired politics that show no leadership and zero inspiration. I don't remember anybody voting him into No 10 and suggest hat he resigns immediately.
- Simon Ellis, London, 15/09/2009 16:23
Report abuse
Like most people in GB I would not believe Brown if he were telling me the time.The man lies as easily as he breathes and shows no quality of leadership.
- P, audierne france, 15/09/2009 16:15
Report abuse
