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Brown accused of trying to cover up 10% spending cuts
Joe Murphy and Paul Waugh16 Sep 2009
Gordon Brown was accused of lying by the Tories today after leaked Treasury documents appeared to expose secret government plans to cut spending by almost 10 per cent.
The bombshell paper marked “confidential” revealed that when the Prime Minister claimed the Tories were planning 10 per cent cuts, his officials were warning him he would have to do the same.
Figures produced a day before the last Budget in April said spending would drop each year from 2010 to 2014, totalling 9.3 per cent over four years and wiping billions from public services.
The disclosure was damaging to Mr Brown — but it was also doubled-edged because the Conservatives will have to reveal deeper cuts if they keep pledges to cut the deficit faster than Labour.
The respected Institute for Fiscal Studies said it was equivalent to £29 billion a year in taxes or cuts, adding: “This would be the tightest squeeze on spending on public services since the UK was negotiating its pending plans with the International Monetary Fund in the late 1970s.”
A leak inquiry was being held at the Treasury.
David Cameron immediately called a press conference and said the Prime Minister's integrity was on the line.
“Gordon Brown was denying something that his own civil servants were telling him was true,” said Mr Cameron. “This is about honesty, it is about trust.” Although Mr Cameron did not use the word liar, journalists at his press conference were handed a document of Brown quotations with the heading: “Labour's 100 per cent lies about 10 per cent cuts”.
And shadow chancellor George Osborne, who has had a cool relationship with the Premier and who obtained the leaked document, had no hesitation. “This is about Gordon Brown misleading the House of Commons, misleading the public, not telling the public the truth about his own budget,” he said.
“This document demonstrates that the Prime Minister misled the House of Commons when he told the House of Commons that the Conservatives were planning 10 per cent cuts and that he was not, because he was near 10 per cent cuts in departmental spending.”
Mr Brown branded Mr Cameron “Mr 10 per cent” in July and told MPs: “The Conservatives are now ideologically committed to 10 per cent cuts in public services. That is not the policy of this Government. We are the party of growth, we are the party of jobs”
He said in a BBC interview that month: “I have always told the truth ... we don't want to have the 10 per cent cuts that the Conservatives are talking about”.
Mr Brown's spokesman denied he had misled Parliament. The Treasury said the paper contained assumptions rather than plans, and the figures would change over time.
The problem for all the parties is that the figures suggest cuts will be deeper and more painful than envisaged. That makes post-election tax rises much more likely.
A massive bill for unemployment, some £12 billion, is the biggest factor. But debt interest on state borrowing is to double to £63 billion — more than the budgets for schools and police combined.
Gemma Tetlow, public finances expert at the IFS, told the Standard: “The Treasury document underlines the extent to which both parties now have to spell out, before the next election, how they are going to squeeze public spending — and how fast they will squeeze it.”
Pressed on Mr Osborne's incendiary accusation, the Prime Minister's spokesman said: “It is an obvious statement that the Prime Minister would never mislead Parliament, clearly.”
However, he added: “We are entering, and I think that was the point the Prime Minister was making yesterday, a very different public spending climate.”
The row derailed the fightback launched by Mr Brown yesterday when he finally admitted cuts would have to fall on “low priority budgets”.
Former Labour minister Frank Field today seized on the leak to ridicule Mr Brown. “Now that the Prime Minister has joined the land of the living, the cuts debate has first to centre on timing and secondly on content,” he said.
How the parties differ
LABOUR
What they have said:
Gordon Brown told the TUC conference yesterday that the Government would “cut costs, cut inefficiencies, cut unnecessary programmes and cut lower priority budgets”. The PM referred to “tough choices”. But he also said that “growth is the best antidote to debt” and insisted that frontline services would not be hit.
What this means:
Mr Brown has succumbed to Lord Mandelson's calls for him to use the word “cuts” to show voters the Government shares their pain and belt-tightening. Yet his underlying approach remains unchanged: keep spending until the downturn is over, then rely on growth — with some spending curbs in selected areas — to tackle the deficit.
Where do they go from here?
The pre-Budget report due this autumn will give Labour a chance to spell out its path to balance-sheet sanity. Delaying big-ticket projects is likely to be the key method. Cutting Trident submarine numbers could be used to slice defence budgets. But there is unlikely to be a Comprehensive Spending Review. Today's leak perhaps shows why the CSR was postponed — the review would have made public the huge scale of cuts that even the Treasury was envisaging to meet its target of halving the deficit by 2014.
CONSERVATIVES
What they have said:
David Cameron reaffirmed today: “Public spending needs to be cut and will be cut by a Conservative government.” Significantly, he said last week in a London speech that the Tories would cut the deficit, set to hit £175 billion next year, more quickly than Labour. He also confirmed that NHS and overseas aid spending would be protected from the axe.
What this means:
The Tory leader and George Osborne have set themselves a much higher bar than the one confronting Labour. By ring-fencing health and aid, the cuts hitting other departments will have to be higher. In April, the IFS said every other department would face 10 per cent cuts to protect these two budgets. Today's leak, revealing a more pessimistic outlook due to higher unemployment costs, suggests the pressure will be even greater.
Where do they go from here?
Token cuts — ID cards and in ministers' pay — have been announced but the real meat has yet to be revealed. A pay freeze for the entire public sector is tipped. Mr Osborne mused about axing “big ticket” defence projects, like the £30 billion Eurofighter and two aircraft carriers. His other option is to raise taxes to help fill the deficit — an increase in VAT to 20 per cent is widely tipped.
Reader views (33)
Apart from the liebour diehards the rest of the country knows what McBottler and his motely crew are.
Chancers,spin merchants and social engineering rabble.
Soon we will be rid of them for a long time,but I do feel sorry for Cameron who will have the joy of sorting out this mess caused by liebour and it,s profligate spending.
- Roy.C, wigan.england., 16/09/2009 20:44
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I am a commited NuLabour supporter.
Regrettably I have been unfaithful to my wife.
When confronted I used the Mandleson/Brown defense and denied everything (even though I am banged to rights).
My confidence paid off for a while, but then a new bit of damning evidence presented itself.
I hid for a week.
I used the Mandleson manover and declared I found the accusation "Offensive". She backed off and I think I have got away with it.
Can any NuLab supporters out there suggest my next move as she is getting very suspicious.
Thank you.
- Edgar, London, 16/09/2009 20:16
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What`s round comes round. I recall when Brown was cock a hoop, prior to the 1997 election, boasting on the tv and in the media that he had received leaked details of the tories spending from a mole in the treasury. Well Gordon it`s not so funny now is it! Poor old Yevette was the one delegated to, "explain," the actions of her masters. Funny that Mandy and Gordon have both decided to go walk about without a word of denial or any attempt at any explanation. How much longer are we going to be taken for mugs by this PM who must go down as the worst PM in living memory. Bring back Tony, had least he had some panche about him - Gordon is a born liar and the trouble is he cannot tell the difference between what is the truth and what is a lie nowadays. Let`s just hope there is a coup at the party conference. Whoever stands against Gordon deserves a knighthood for saving the nation in its hour of need.
- B Gare, Norfolk Gorleston, 16/09/2009 18:29
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Osbourne needs to tell us details of what cuts he will make ...
- Melvyn Windebank, Canvey Island, Essex, 16/09/2009 18:11
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Only another 8 months of the ghastly, deluded, McBean and his rotten Labour party.
- David, Fleet UK, 16/09/2009 17:48
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Labour's defence is (A) it's old news that Gordon Brown was lying/dissembling and (B) anyway, everyone ignored him at the time. This bears repeating. Our Prime Minister lied/dissembled (a distinction without a difference everywhere except Parliament and a court of law) but it doesn't matter as he was/is ignored and derided. QED.
- Bam, London, 16/09/2009 17:35
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Carl, I am no supporter of this government, as my numerous postings here will demonstrate, but the most depressing thing is that I agree with you. Kenneth Clarke should be Shadow Chhancellor.
- Captain Black Of The Mysterons, London, England, 16/09/2009 17:14
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Show some killer instink call me Dave. Go for the jugulur and kick Brown and his phonies in to the gutter where they belong. Then take control of the country and put the dangerous 4 on trial for treason followed by the rest of them.
- Mike,, London, 16/09/2009 16:44
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Yellow streak Gordon Brown does not know his arse from his elbow. He is a buffoon to beat all buffoons. How can you slam the need for cuts and then admit you need cuts one month later, he's completely clueless. Anyone who votes for this bunch of fools deserves a crumbling Britain.
- Andy, Halifax, 16/09/2009 16:21
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Well at least we now know that Osbourne will leave us practically defenceless. Well done Gideon!
- Bill, Colchester, UK, 16/09/2009 15:56
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Make a real cut, and cut gloom & bust Brown along with the flip-flopping doom & bust Labour Government!
- Joe, Thornton Heath, London, England., 16/09/2009 15:28
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10% cuts will not be enough to pull us out of the bottomless pit of government debt that McBroon has dragged us into.
McBroon was bullshitting on stage at the TUC conference yesterday. He continually repeated his tired mantra that we are victims of the Global downturn and that he alone had saved the world. His repeated claims that the Tories would have done nothing and that he must continue to plunge us ever further into debt really did start to grate.
There is evidence of his own failure fairly close to hand; France and Germany did NOT follow his "advice" and saddle their upcoming generations with unfathomable debt, they showed restraint, whilst McClown continued to spend money we didn't have. The result was a small amount of growth in those countrys in the 2nd quarter of this year, and continued contraction in the UK.
We need to start cutting costs now, and a good start would be the immediate scrapping of NuLiebour's intrusive surveillance databases, suspension of payment to the EUromonster (preferably permanently) and massive cuts in benefit payments to workshy spongers and freeloading foreigners. Then we can start on the 800,000 public sector jobs and myriad unaccountable qangos that McFool created AFTER he promised cost-saving cuts!
- Keith Lonsdale, Doncaster, 16/09/2009 15:18
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Gordon Brown is a hopeless flake; and a disingenuous flake at that.
There must be fifty plus million people waiting to see the look on his face when he is hurled from office.
- Robin, London, 16/09/2009 15:04
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Check Mate to the Tories!!.
- Mark Burton, St Ives. Cambs, 16/09/2009 14:29
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Translation of Brown (and Labour) talk
Will do......will not do
Will not do......will do
What's new
- El Del, Valencia Spain, 16/09/2009 14:15
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Brown - like Livingstone before him - has just got to go - period. Blair is mostly to blame of course.
- David, London United Kingdom, 16/09/2009 14:12
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Gordon Brown is a lier - whats new?
- David Pearce, Manchester, 16/09/2009 13:19
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Why are people surprised by this? So Brown has lied (again!). Not only is the 'son of the manse' the worse PM we have ever suffered, he is also the most dishonest. His entire time in office has been based on lies and deceptions, such as the porky of the century "I have put an end to boom and bust". The guy's a cretin and a nasty piece of work. I suppose he has achieved something though......the near total destruction of the UK!!
- Margy, London, 16/09/2009 13:18
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Cut 10% of the freeloading, chancing, swingeing MPs would be a good start. The temerity that they have to show up when they feel like and collect a handsome salary off the back of taxpayers like me is insulting in the extreme.
- Wallytrader, London, 16/09/2009 13:13
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This isn’t really news, unless it means the Queen can now call for a general election?
The Labour supporters (or enemies of the state, as I prefer to think of them) will continue to vote Labour no matter what Broon, Mandelspin or anyone else in the cabinet says or does, they are like moths to a light, they cannot think rationally and cannot change their voting habits.
The rest of us, the sentient voters, have long since stop listening to anything Broon and Mandelspin say, so revealing their comments to be untruthful really doesn’t mean much to us – we all assume they are telling “untruths” anyway. Broon and Mandelspin’s only objective now is to stay in their jobs, they’ve long since stopped caring about making Britain a better place.
- St, London, 16/09/2009 13:03
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Oh Gorden..........'no cuts......no cuts....... no cuts......blar..........blar..........blar'.
He's still not listening to the people.
- C Cusano, Bedford, 16/09/2009 13:00
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The blunt truth of the matter is that our Prime Minister is a LIAR, he is shifty, deceitful, and, you cannot believe a word that falls from his mealy mouth. In a nutshell he is a national disgrace, immoral, unfit for purpose,as are most of his Ministers(If not liars, plain stupid, you choose!) One of the very few Ministers, in my view, that come out of this sordid mess,with an enhanced reputation, is the Chancellor, Daring, who refused to peddle the lies, and, untruths of his psychopathic deranged boss, and, his gang of halfwits. Bearing in mind the pressure he must have come under, I certainly think he deserves our admiration, and, respect for his courage, decency, and honesty!
- Kevin Sullivan, Roehampton, London., 16/09/2009 12:55
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I am a conservative but for the life of me I cannot understand how the labout party can let itself be led by this clown with such bad political instincts.
OK most of them on both sides have never had a real job so you expect the odd stupid policy here or there , but they at least ought to be politically savvy enough to stop making such stupid gaffes. Gordon must be living in his own version of waynes world.
- Kevin, london, 16/09/2009 12:43
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Simple. Gordon Brown now has upgraded his PR machinery. He thought by saying labour is for spend and conservatives for spending cut, he would fool the voters. Opinion polls however showed that people would rather know the truth (like any patient with a terminal illness) than continued to be fooled. Mandelson and Brown has therefore changed the tune to say he will 'cut' spending, but wisely. And also leaked the documents to show that as a responsible government he is looking at spending cuts. The problem for him are two. First, we all know that all of us, rich or poor, have to pay the price for Gordon Brown's disastrous stewardship of the economy for 12 years. We elected them thrice and have to pay the price. Second, nothing is going to make any of us believe him. Whatever he says, at best it is a clever spin and at worst a blatant lie.
- Nat, New Malden, 16/09/2009 12:20
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10%? Is that all? There needs to be at least a 25% cut in the staff costs before you even start looking at what the remainder actually do.
Take a look at some of the quango's and non-frontline "services" that the government provide e.g. a:gender, Potato Council etc.
We have been taken for a very costly ride by this government. Hopefully we will be able to change trains soon.
- Nobby Clark, Perth, the Scottish one, 16/09/2009 12:12
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As much as it distresses me to say this, I would trust Brown over Osborne any day. Osborne is just putting his own spin on this document.
- Carl, London, 16/09/2009 12:09
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The public finances would benefit greatly if George Osborne would pay his taxes: he still owes £55,000 to Her Majesty's Revenue and Customs in respect of capital gains tax on his taxpayer-funded luxury home. Pay up George.
- Neil, London, London UK, 16/09/2009 12:05
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Does Joe Public believe one single word spouted by parasite MP's?
The electorate would be better hibernating for the next 9 months, than being bombarded with the daily dosage of political drivel being spun by Downing Street and by the Wombles of Westminster.
- Reuben Camara, Morecambe Compound, EUSSR, 16/09/2009 10:57
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We've had 12 years of this discredited Brown and it beggars belief that anybody can trust a single word he utters after consistent deceit, obfuscation, lies and bullying.
- Bingham Macnamara, lymington, hampshire, 16/09/2009 10:56
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Brown's halfwit brigade are mentally bankrupt, and, like water, will find their true level (the dole queue) on General Election wipeout day. BRING IT ON!
- Ted, London, 16/09/2009 10:55
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When will get shadow Ministers with more knowledge of the real world ?
- Bernard Parke, GUILDFORD, 16/09/2009 10:04
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Quick, send for the fire brigade. Gordon's pants are on fire again!!!!!
- Alan, carlisle uk, 16/09/2009 09:51
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Gosh, I have to express surprise and bewilderment that the government thinks we'll all fall for this leak trick of theirs once again. This pushing out of leaks in some bizarre effort to test the waters of public opinion now only highlights their utter and complete lack of integrity.
- Threaded, Roskilde, Denmark, 16/09/2009 09:40
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