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| Version 7 | Version 8 |
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| Labour 'to review all spending' | Labour 'to review all spending' |
| (41 minutes later) | |
| The government will review "everything" to do with its spending commitments as it deals with reducing the budget deficit, Lord Mandelson has said. | The government will review "everything" to do with its spending commitments as it deals with reducing the budget deficit, Lord Mandelson has said. |
| The business secretary told the BBC that resources would be switched from "lower to higher priority areas". | The business secretary told the BBC that resources would be switched from "lower to higher priority areas". |
| Asked if this meant Trident or ID cards might be cancelled, he said it would be "foolish to rule out anything". | Asked if this meant Trident or ID cards might be cancelled, he said it would be "foolish to rule out anything". |
| Lord Mandelson is due to give a speech later which aides say will launch Labour's fightback against the Tories. | Lord Mandelson is due to give a speech later which aides say will launch Labour's fightback against the Tories. |
| It comes as debate rages about how the government is aiming to halve its budget deficit - expected to reach £175bn this year - within four years. | It comes as debate rages about how the government is aiming to halve its budget deficit - expected to reach £175bn this year - within four years. |
| 'Restraint' | 'Restraint' |
| The level of public spending looks set to be a major issue in the run-up to the next general election. | The level of public spending looks set to be a major issue in the run-up to the next general election. |
| The Tories say it must be reduced now to cut government debt, while Labour says the Conservatives' attitude would damage frontline public services. The Lib Dems say "big ticket" items need to be rethought. | The Tories say it must be reduced now to cut government debt, while Labour says the Conservatives' attitude would damage frontline public services. The Lib Dems say "big ticket" items need to be rethought. |
| FROM THE TODAY PROGRAMME More from Today programme | FROM THE TODAY PROGRAMME More from Today programme |
| The business secretary told BBC Radio 4's Today: "There are various ways to go about accepting that we are entering a period of public spending restraint, in which we've got to be wise spenders, not big spenders. | The business secretary told BBC Radio 4's Today: "There are various ways to go about accepting that we are entering a period of public spending restraint, in which we've got to be wise spenders, not big spenders. |
| "I simply don't accept, as the Tories and some of their friends in the media would have us believe, that the Labour approach to this boils down to the same thing. I believe there's a real choice." | "I simply don't accept, as the Tories and some of their friends in the media would have us believe, that the Labour approach to this boils down to the same thing. I believe there's a real choice." |
| He said the Labour and Tory "instincts" on public services were different, adding: "They believe in smaller government and a smaller state. That's why they are rather salivating about wielding the axe." | He said the Labour and Tory "instincts" on public services were different, adding: "They believe in smaller government and a smaller state. That's why they are rather salivating about wielding the axe." |
| The government would be "stepping up efficiency savings". | The government would be "stepping up efficiency savings". |
| The business secretary's comments came as the TUC's annual congress gets under way in Liverpool, with unions warning that cuts would mean mass public sector redundancies. | The business secretary's comments came as the TUC's annual congress gets under way in Liverpool, with unions warning that cuts would mean mass public sector redundancies. |
| 'Can't be clearer' | 'Can't be clearer' |
| TUC general secretary Brendan Barber has said slashing public spending cause a "double-dip" recession, with four million people unemployed. | TUC general secretary Brendan Barber has said slashing public spending cause a "double-dip" recession, with four million people unemployed. |
| Lord Mandelson did not use the word "cuts" to describe the government's approach to public spending. | Lord Mandelson did not use the word "cuts" to describe the government's approach to public spending. |
| But he said: "It will mean switching resources from lower to higher priority areas which do meet the new challenges. I can't be clearer than that... | But he said: "It will mean switching resources from lower to higher priority areas which do meet the new challenges. I can't be clearer than that... |
| We do not believe that we should try to solve problems simply by throwing money at them Business Secretary Lord Mandelson TUC rejects claims of recovery | We do not believe that we should try to solve problems simply by throwing money at them Business Secretary Lord Mandelson TUC rejects claims of recovery |
| "Everything is going to have to be examined." | "Everything is going to have to be examined." |
| Asked about whether Trident and ID cards could be cancelled, Lord Mandelson said it was not certain "that the assumptions that some people are making about that those big projects would offer would actually come about in reality. | Asked about whether Trident and ID cards could be cancelled, Lord Mandelson said it was not certain "that the assumptions that some people are making about that those big projects would offer would actually come about in reality. |
| "I've seen some rather different figures related to the savings that would arise from cancelling those projects which don't make the contribution that some people imagine." | "I've seen some rather different figures related to the savings that would arise from cancelling those projects which don't make the contribution that some people imagine." |
| HAVE YOUR SAYIf the government cannot balance the books it must spend less and that means cuts in the public sectorJohn, Stafford Send us your comments | |
| For the Conservatives, shadow Treasury minister Philip Hammond told Today that Labour had been "reckless" in its spending. | For the Conservatives, shadow Treasury minister Philip Hammond told Today that Labour had been "reckless" in its spending. |
| He said: "You don't pour money in indiscriminately and then afterwards ask people to change their working practices." | He said: "You don't pour money in indiscriminately and then afterwards ask people to change their working practices." |
| Speaking about his own party's plans, Mr Hammond said: "This is not an agenda... of indiscriminate slash and burn. | Speaking about his own party's plans, Mr Hammond said: "This is not an agenda... of indiscriminate slash and burn. |
| "It's an agenda of precise surgical intervention to try to improve the way public services are delivered." | "It's an agenda of precise surgical intervention to try to improve the way public services are delivered." |