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We'll have to cut costs - Darling We'll have to cut costs - Darling
(30 minutes later)
Chancellor Alistair Darling has said the government must start "cutting costs" as it deals with the effects of the recession. Chancellor Alistair Darling has said the government will have to "cut costs" and "shift resources to the front line" to deal with the recession's effects.
Ministers will "not flinch" from "hard choices" on spending but must still commit to "fairness," he said. He said ministers would have to look at selling off "non-essential public sector assets" and shift resources to "where they are needed most".
But ahead of the speech he told the BBC he would only announce details of public spending plans to Parliament. But he said cutting spending now risked "choking off" the recovery.
The Tories have accused Labour of not being honest about planned cuts in previous rows on public spending. Earlier Tory leader David Cameron said Labour's planned spending increases next year were "unaffordable".
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". In a speech in Cardiff, part of the Chambers of Commerce Business Week, Mr Darling said, for the economy to recover, "targeted public investment" was essential.
Pre-election row 'Choking' recovery
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". But he said the government was prepared to make the "tough choices necessary" while continuing to build a "fair society".
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. He said the role of government was important - and accused the previous Conservative administration of abandoning "hundreds of thousands who lost their jobs".
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 class="" href="/2/hi/uk_news/politics/8243780.stm">Cameron would axe MPs' cheap food "It is not within the power of any government to protect every job. But it is within our power - and I believe our responsibility - to support people and help them find new employment."
He said Labour thought government could be a force for good, while the Conservatives "instinctively take an opposite view". He said cutting support now would risk "choking off" the recovery and prolonging the downturn.
"It's for us to spell out more clearly where we stand," he said. But he added: "In the medium term we need to live within our means, not to do so would be equally irresponsible and damage our country's future."
In his speech in Cardiff, part of the Chambers of Commerce Business Week, Mr Darling said "well-managed and targeted public investment" was needed. Slower growth
Test of character He cited plans to increase the top rate of tax on high earners, as outlined in the Budget, as one of the ways the government intends to halve the deficit over four years.
He added: "Gordon Brown and I have spoken of the hard choices needed in public spending over the coming years. "It is also necessary to see slower growth in public spending in the coming years," he said.
And on health he said money had to be spent "more effectively" in preventing illness, so less was spent on the cure and the government would "revisit" health targets to give the NHS front line "flexibility".
That candour is a world away from the current Labour government David Cameron Cameron would axe MPs' cheap food
"Gordon Brown and I have spoken of the hard choices needed in public spending over the coming years," he said.
"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. Serious savings
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. 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.
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".
In his own speech earlier, Tory leader David Cameron said only his party was being "straight" with people about dealing with the "deficit crisis".
"We've taken the bold step of saying to the British public very clearly, with a Conservative government, public spending will be cut. Not reduced in growth, not frozen, but cut," he said.
"That candour is a world away from the current Labour government. "
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.