Brown's bid to balance the books

Sep 16 2009 By The Journal

GORDON Brown has finally admitted that cuts in public spending are looming - but insisted frontline public services would be protected.

The Prime Minister told the TUC Labour will "cut costs, cut inefficiencies, cut unnecessary programmes and cut lower priority budgets" in order to meet its target of halving the £175bn state deficit within four years.

Conservatives accused Mr Brown of "hoisting the white flag" and conceding defeat in the long-running row over public spending, after months in which he has sought to frame the upcoming general election as a choice between Labour investment and Tory cuts.

The Prime Minister’s initiative won a lukewarm reaction at the TUC annual congress, where some trade unionists held up banners reading "no cuts".

He gave no indication in yesterday’s speech of which areas of Government activity might be the targets for cuts as the UK emerges from recession.

But he insisted voters had a choice between spending reductions under Labour which would be "guided by our values of fairness and responsibility" and "callous and cold-hearted" Tory cuts.

"Labour will cut costs, cut inefficiencies, cut unnecessary programmes and cut lower priority budgets," said Mr Brown. "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."

He added: "The choice is between Labour who will not put the recovery at risk, protect and improve your frontline services first and make the right choices for low and middle-income families in the country. And a Conservative Party which would reduce public services at the very time they are needed most, make across-the-board public spending cuts to pay for tax cuts for the wealthiest few, and make different choices about public services because they have different values.

"These would be the wrong choices at the wrong time for the wrong reasons because they have the wrong priorities for Britain."

The PM’s reluctance to discuss the need for spending reductions has led to press reports that the word "cuts" had become a taboo at 10 Downing Street.

But his spokesman played down the significance of Mr Brown’s use of the word, insisting he had made clear many times over the past few months that "tough choices" would be required.

Mr Brown said he wanted to tell "the tough truth about the hard choices" needed to achieve "sustainable public finances" once the recession is over.

He made clear his intention to maintain spending levels until the recovery is in place, saying: "My priorities in the coming weeks and months will be ensuring that jobs are retained, the recovery moves forward and that we offer people our vision of a fairer, more responsible, greener and more democratic Britain."

And he warned reining in spending now, as the Conservatives advocate, would put recovery at risk.

"The recovery is not automatic and the road to recovery is still fragile," said the Prime Minister. He added: "People’s livelihoods and homes and savings are still hanging in the balance, and so today I say to the British people: don’t allow anyone to put the recovery at risk."

Mark Serwotka, leader of the Public and Commercial Service union, said it was a "desperately disappointing speech which has given no comfort to millions of public sector workers", while RMT leader Bob Crow said Mr Brown had "blown" his last chance to win over the unions and had "the look of a beaten man".

But Unite joint leader Derek Simpson said: "Gordon’s put clear water between Labour and the Tories by focusing on jobs, homes, equality and fairness at work."