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We'll have to cut costs - Darling | We'll have to cut costs - Darling |
(about 5 hours later) | |
The government will have to start "cutting costs" as it deals with the effects of the recession, Chancellor Alistair Darling will say in a speech. | |
Ministers will "not flinch" from "hard choices" on spending but must still commit to "fairness," he will say. | |
But ahead of the speech he told the BBC he would not be announcing details of public spending plans. | |
The Tories have accused Labour of not being honest about planned cuts in previous rows on public spending. | |
And the party says the government's stated aim of cutting its spending deficit by half in four years is based on little more than "hope". | |
Pre-election row | |
BBC political correspondent Gary O'Donoghue said the speech marked the start of a shift in emphasis by Labour about its spending plans - which Gordon Brown has repeatedly portrayed as continued investment in contrast to Conservative "cuts". | |
In April's Budget, Mr Darling forecast that public borrowing this year would reach £175bn and arguments about how that figure will be reduced are set to dominate the political agenda in the run-up to the general election. | |
But, ahead of the speech, Mr Darling told BBC Radio Wales any detailed public spending announcements would be announced in Parliament, not in his speech. | |
Gordon Brown and I have spoken of the hard choices needed in public spending over the coming years Alistair Darling | Gordon Brown and I have spoken of the hard choices needed in public spending over the coming years Alistair Darling |
He said Labour thought government could be a force for good, while the Conservatives "instinctively take an opposite view". | |
"It's for us to spell out more clearly where we stand," he said. | |
"What I'm saying today is that I think the government can make a difference. It also means there are some areas where you might not be able to do everything you want to do today, you might have to do that further down the line." | |
Test of character | |
In his speech in Cardiff, part of the Chambers of Commerce Business Week, Mr Darling will say "well-managed and targeted public investment" is needed. | |
He will add: "Gordon Brown and I have spoken of the hard choices needed in public spending over the coming years. | He will add: "Gordon Brown and I have spoken of the hard choices needed in public spending over the coming years. |
"We won't flinch from the difficult decisions that will be necessary, and we will always act guided by our core values of fairness and responsibility. | "We won't flinch from the difficult decisions that will be necessary, and we will always act guided by our core values of fairness and responsibility. |
"This will be our test of character. Properly targeted public investment can and should make a difference. | "This will be our test of character. Properly targeted public investment can and should make a difference. |
"That means making choices and setting priorities - shifting resources to the front line. It means more efficiency, continuing to reform, cutting costs, public and private sectors working together." | "That means making choices and setting priorities - shifting resources to the front line. It means more efficiency, continuing to reform, cutting costs, public and private sectors working together." |
The Conservatives argue that Labour's economic stimulus package is costing too much and damaging public finances. | |
They also say that the government has been dishonest in not admitting it will need to make Budget cuts in order to rebalance the books. | |
The Liberal Democrats say both of the main parties need to be more honest about the fact that "big programmes" will have to be cut back. | |
Leader Nick Clegg said last month he recognised "serious savings" had to be made to bring the public finances under control but said frontline services had to be protected. |