Darling ‘won’t flinch’ from spending cuts
By Alex Stevenson
The Treasury’s plans to cut the budget deficit in half over the next four years are to be revealed by Alistair Darling today.
The chancellor will tell the Chambers of Commerce at Cardiff City Stadium he is determined to keep spending under control, following his announcement earlier this year that public borrowing will reach 12.4 per cent of GDP next year.
He wants to cut this deficit to 5.5 per cent of GDP by 2014.
With a general election due by next June Mr Darling’s speech will unsurprisingly emphasise Labour’s commitment towards avoiding reversing its social achievements.
“There are those who have used this crisis to justify widespread cuts in public expenditure,” the chancellor will say.
“We won’t flinch from these difficult decisions. But we will always be guided by our core values of fairness and responsibility.”
Mr Darling’s speech lays the groundwork for this autumn’s Pre-Budget Report, which is expected to begin to reveal the kinds of areas likely to be cut.
“Properly targeted public investment can and must make a difference,” he will add.
“But this means making choices and setting priorities. It means more efficiency, continuing to reform, cutting costs, public and private sectors working together.”
One way forward is offered by a ComRes poll published in today’s Independent newspaper, which shows 58 per cent of respondents back scrapping Britain’s nuclear deterrent Trident.
The poll also found a majority wanting to maintain increases in health and education spending, despite the recession and perilous state of the public finances.
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