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Ken Clarke backs EU calls for UK to cut spending by £20bn
Paul Waugh, Deputy Political Editor16 Mar 2010
The pre-Budget row over Britain's massive deficit reignited today as Kenneth Clarke backed calls from the EU for a further £20 billion of spending cuts.
The shadow business secretary supported Brussels' “common sense” demands for much quicker moves to slash the UK's £178 billion debts by 2014-15.
Mr Clarke warned that a David Cameron government would enact “tough” spending curbs and “get rid of” the nation's structural deficit to avoid soaring interest rates and job losses.
But Treasury Chief Secretary Liam Byrne said that it was for a “British Chancellor” to decide what was right for “the British economy”.
He claimed that a further £20 billion in cuts would cause “irreparable damage to public services”. But the minister had to retract his claim last week that there would be no VAT or other tax rises in the Budget.
All the parties signalled the battle over Britain's deficit would be a centrepiece of their general election campaigns.
Labour says cutting spending too early would hit frontline schools and hospitals, but the Tories say Britain has to act to avoid problems in the long-term.
Lib-Dem leader Nick Clegg warned in a speech today that over-zealous spending cuts could lead to civil unrest just as they had in Greece.
A leaked draft of an EU report, due out tomorrow, warned that Labour's plans to repair the public finances were not “sufficiently ambitious”.
Asked on BBC Radio 4's Today programme if he wanted to cut an extra £20 billion, Mr Clarke, said: “It is necessary to get rid of the structural deficit. If you don't do that, interest rates will go up, you won't have any economic recovery.”
Reader views (5)
If only there would be a politician who displays the guts to run uk without constant inference from Brussels (who cannot run their own country). When is Cameron going to realise the £50 million/day down the drain to EU?. The problem is that the game is up and nobody wants the poison challice so if John Major had not signed Maastrict Treaty we may not now be swilling in our own excrement!. He did and where is Mr Farage when he is wanted. Too bad the LDs look so hopeless - they are in effect a part of the problem - not the solution and will never again make a Government.
- John M, hythe uk, 16/03/2010 19:15
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Scrap Trident 2: £20bn.
Ditto The Olympics: £10bn minimum.
ID cards: £10bn.
Make civil servants pay for their own pensions: £900bn.
Not difficult to save the required amount; all it takes is someone with the courage to cancel or change a lot of this government's decisions.
- Nobby Clark, Perth, the Scottish one, 16/03/2010 16:35
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This is the first time in 30 years that the EU has got something right. My father used to say "politicians spout off at the mouth so often that by the law of averages they must be right sometimes!"
We have had so many tax increases in the last 13 years but where has all the money gone? How can 4 more years of the same labour policies fix the problem?
- Lindsayh, Northolt, UK, 16/03/2010 16:17
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I seem to have been under the mistaken impression that whatever government we elect in May will be responsible for the conduct of the nation's finances.
Brussels obviously has a contrary opinion, thanks to the craven attitude of all the leading parties towards the "project" over the last 30 years.
This country needs to do is deliver a loud and clear message to the unelected EU Commision to mind it's own business. That cannot be achieved by voting for the LibLabCon conspiracy.
- John C, Surrey, UK, 16/03/2010 16:02
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We can save pretty close to that amount be leaving the EU.
- Frank, Home Counties, England., 16/03/2010 14:50
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