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Version 2 | Version 3 |
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We'll have to cut costs - Darling | We'll have to cut costs - Darling |
(29 minutes later) | |
Chancellor Alistair Darling has said the government must start "cutting costs" as it deals with the effects of the recession. | |
Ministers will "not flinch" from "hard choices" on spending but must still commit to "fairness," he said. | |
But ahead of the speech he told the BBC he would only announce details of public spending plans to Parliament. | |
The Tories have accused Labour of not being honest about planned cuts in previous rows on public spending. | 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". | 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 | 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". | 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. | 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. | 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 Cameron would axe MPs' cheap food | Gordon Brown and I have spoken of the hard choices needed in public spending over the coming years Alistair Darling Cameron would axe MPs' cheap food |
He said Labour thought government could be a force for good, while the Conservatives "instinctively take an opposite view". | 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. | "It's for us to spell out more clearly where we stand," he said. |
In his speech in Cardiff, part of the Chambers of Commerce Business Week, Mr Darling said "well-managed and targeted public investment" was needed. | |
Test of character | Test of character |
He added: "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. | 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. | 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. | 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. | 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. |