Darling warns of toughest cuts for 20 years - The Times

drc

I would have thought it would be more than 20 years...

http://www.timesonline.co.uk/tol/news/politics/article6981594.ece

Alistair Darling has warned that Britain faces its toughest spending cuts for 20 years if Labour continues in office.
The Chancellor, indicating a dramatic shift in his party’s election strategy, tells The Times today that severe spending restraints are “non-negotiable” if he is to bring down the £178 billion budget deficit.
The remarks suggest a big victory for Mr Darling and Lord Mandelson after the attempt to bring down the Prime Minister. Gordon Brown has apparently been dissuaded by two of his most powerful Cabinet colleagues from adopting a simplistic “investment versus cuts” election campaign associated with his close adviser Ed Balls.
Two days after the botched putsch, The Times can also reveal that Mr Brown will ask voters to give him “a full second term” at the polls. A Labour official released the unequivocal statement to avoid unwanted speculation in coming months.
Mr Darling and Lord Mandelson were upbeat yesterday after urging the Prime Minister to show the country and the money markets that Labour was more serious than the Conservative Party about slashing public debt and enhancing its credibility with the middle classes.
“My priority is to get borrowing down. Once recovery is established we have to act,” the Chancellor said.
“The next spending review will be the toughest we have had for 20 years . . . to me, cutting the borrowing was never negotiable. Gordon accepts that, he knows that.”
Lord Mandelson said: “We have got to win people back to our side. We are a national party, a party that represents people in every part of the United Kingdom, and we are going to offer policies that will benefit people in every part of the United Kingdom.”
Their remarks reinforce the impression that ministers used Mr Brown’s temporary weakness on Wednesday afternoon to warn him that he had to be more collegiate to retain their support and to ensure that the party again fights the election as “new Labour”.
Mr Darling admits that when he met Mr Brown late on Wednesday afternoon they talked about the Budget. His interview suggests that he was happy with the outcome — yesterday the Cabinet had its first meeting since the “botched putsch” and not one minister mentioned it.
The Chancellor’s language about cuts in his interview would have been unthinkable a few weeks ago. He says that Labour will be more realistic than the Tories, who still have to explain how they will pay for their concessions on marriage tax allowances and inheritance tax.
“We are saying to people there are some things that matter [which] we need to protect. But the next spending review will be tough. There will be programmes that need to be cut. It will be the toughest for 20 years,” Mr Darling said.
Officials made plain that the Comprehensive Spending Review to which Mr Darling referred would happen after the election, although he indicated that more details would be spelt out then.
His certainty that there will be a Budget, which cannot take place under law before March, is further confirmation that the election is likely to take place on May 6.
Mr Darling said that Labour will “absolutely not” entertain a core-vote strategy at the election. “Peter said the same thing this week,” he said, referring to Lord Mandelson.
“Narrow appeals to one particular group or another simply don’t work. Gordon was involved in the start of the new Labour process. One of the reasons Tony Blair became leader was because Gordon had taken unpopular decisions to junk some of the old Labour stuff we had accumulated. It is blindingly obvious you cannot win elections if you cannot capture the middle ground.”

Emy1501

I read the article and got the impression that Darling was trying to prove that he would cut more than the Tories. Seemd a bit strange a bit like the feeling was that the public were going to be happier with the party who cut most

treliac

Maybe this week's challenge has had the right impact on Brown. At least Darling seems less constrained from openly facing reality now.

michaels

Isn't it that dog whistle thing - Brown telling Labours core constituency (public sector workers and those on benefits) that Labour will 'spend our way out of recession' whilst Darling is saying just enough to keep the bond markets onside until May?

Anyone think it will work?

prowla

That idiot has helped create the mess we are in, so I don't see what he's got to be so "upbeat" about!

Radiantsoul

Emy1501 wrote: »

I read the article and got the impression that Darling was trying to prove that he would cut more than the Tories. Seemd a bit strange a bit like the feeling was that the public were going to be happier with the party who cut most

Both parties are going to have to outline how they propose to reduce the deficit in order to appear credible to the electorate. I am guessing trust and credibility will be key issues in the elections, as the two parties probably won't have widely differing policies. There is likely to be a low turnout as politicians trust rating seem to be at a bit of a low!

tomterm8

Emy1501 wrote: »

I read the article and got the impression that Darling was trying to prove that he would cut more than the Tories. Seemd a bit strange a bit like the feeling was that the public were going to be happier with the party who cut most

He's trying to get the tory party to commit to tougher cuts than is prudent. Since the Tory party will be in government after the election, labour party policies don't matter. But the Torys have to be seen to outcut Labour, because of their core voters. The Torys will implement the unpopular policies, and then, when the Torys cause a recession worse than this one... well... they won't be in power as long as they could have been.

Or, at least, I think that is what Darling is thinking.

[Deleted User]

So any thoughts on what 'cuts' might mean to us?

I guess it's likely that both parties will 'cut' the same amount but the difference will lie in where the cuts are made?

From a purely selfish point of view where would you like to see cuts and where would you like to see spending continue? And which party is most likely to leave the most cash in YOUR pocket?

michaels

Personally for my pocket I'd like to see lots of govt spending and higher taxes but economically and with respect to personal liberty smaller govt and hence cuts would be preferable

Old_Slaphead

Radiantsoul wrote: »

Both parties are going to have to outline how they propose to reduce the deficit in order to appear credible to the electorate. I am guessing trust and credibility will be key issues in the elections

I think you're wrong - both parties will keep the true nature of what's going to happen as secret as possible until after the election - there's fewer votes from the masses for those who go too far overboard on the hard times message.

After the election - if the Tories get in they'll kitchen sink it straight away blaming Labour profligacy. If, heaven forbid, a Labour Coalition gets in cuts will be done by stealth.

Snooze

It's all moot anyway as Labour will be booted out in a few months and (hopefully) will never see the light of day again.

/topic.

R