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Osborne: Brown misled MPs on cuts Osborne: Brown misled MPs on cuts
(about 1 hour later)
Leaked Treasury documents show Gordon Brown "misled" Parliament on the scale of planned spending cuts, shadow chancellor George Osborne has said.Leaked Treasury documents show Gordon Brown "misled" Parliament on the scale of planned spending cuts, shadow chancellor George Osborne has said.
The papers suggest the government is preparing 9.3% cuts in departmental budgets over the four years from 2010, he told the BBC.The papers suggest the government is preparing 9.3% cuts in departmental budgets over the four years from 2010, he told the BBC.
He said Mr Brown had told MPs he was not planning 10% cuts.He said Mr Brown had told MPs he was not planning 10% cuts.
No 10 rejected claims Mr Brown misled Parliament while sources said the Treasury has ordered a leak inquiry.No 10 rejected claims Mr Brown misled Parliament while sources said the Treasury has ordered a leak inquiry.
Whitehall sources said an investigation would be launched into how the 22 page document, which was marked "confidential", was obtained by the Conservatives.Whitehall sources said an investigation would be launched into how the 22 page document, which was marked "confidential", was obtained by the Conservatives.
'Cover-up''Cover-up'
Conservative leader David Cameron told his monthly press conference the documents showed Mr Brown had been engaged in a long-term "cover-up" of plans to cut public spending.Conservative leader David Cameron told his monthly press conference the documents showed Mr Brown had been engaged in a long-term "cover-up" of plans to cut public spending.
"Wednesday after Wednesday, the prime minister stood up in the House of Commons and repeated the line that the coming battle was between Labour investment on the one hand and Tory cuts on the other," he said."Wednesday after Wednesday, the prime minister stood up in the House of Commons and repeated the line that the coming battle was between Labour investment on the one hand and Tory cuts on the other," he said.
The most interesting thing about the leaked numbers from an economic standpoint is just how pessimistic the Treasury is being about the rise in social costs over the next few years Stephanie FlandersBBC economics editor Read Stephanie's thoughts in fullThe most interesting thing about the leaked numbers from an economic standpoint is just how pessimistic the Treasury is being about the rise in social costs over the next few years Stephanie FlandersBBC economics editor Read Stephanie's thoughts in full
"All those words have turned to dust and, as I consistently warned week after week, reality has now caught up with our prime minister.""All those words have turned to dust and, as I consistently warned week after week, reality has now caught up with our prime minister."
He added: "Gordon Brown was denying something that his own civil servants were telling him was true."He added: "Gordon Brown was denying something that his own civil servants were telling him was true."
Mr Cameron said the Conservatives had been "candid" about the need for spending cuts and would spell out their plans in more detail closer to the next election.Mr Cameron said the Conservatives had been "candid" about the need for spending cuts and would spell out their plans in more detail closer to the next election.
"Let me make it clear: they are not wrong to be planning cuts but they are wrong to try to cover up their plans for cuts," he told the news conference."Let me make it clear: they are not wrong to be planning cuts but they are wrong to try to cover up their plans for cuts," he told the news conference.
"This is about honesty, it is about trust. This is about not taking people for fools. And on this issue, as I have to say on so many others, the prime minister does not seem to have learned.""This is about honesty, it is about trust. This is about not taking people for fools. And on this issue, as I have to say on so many others, the prime minister does not seem to have learned."
Defence spendingDefence spending
Mr Osborne said the documents, which he said had been handed to the party "in the proverbial brown envelope", showed Mr Brown had "misled" Parliament as he had dubbed Mr Cameron "Mr 10%" while "sitting all the time on internal Treasury documents telling him the real truth". Mr Osborne said the documents showed Mr Brown had "misled" Parliament as he had dubbed Mr Cameron "Mr 10%" while "sitting all the time on internal Treasury documents telling him the real truth".
Mr Cameron also played down reports the Conservatives would axe big defence projects like the £20bn Eurofighter deal and a £2.7bn order for the Airbus A400M after Mr Osborne mentioned them during a speech on Tuesday.
FROM THE TODAY PROGRAMMEFROM THE TODAY PROGRAMME
But he said no areas were "exempt" from the need to control public spending and pledged an early Strategic Defence Review, if the party wins the next election. On Tuesday, Mr Brown admitted that Labour would have to make cuts in public spending if it won the next election but he said the party would never "support cuts in the vital frontline services on which people depend".
On Tuesday, Mr Brown admitted for the first time that Labour would have to make cuts in public spending if it won the next election but he said the party would never "support cuts in the vital frontline services on which people depend".
But in June, the prime minister claimed that the government was planning real terms increases in public spending.But in June, the prime minister claimed that the government was planning real terms increases in public spending.
And he seized on comments by shadow health secretary Andrew Lansley, who said that in order to protect spending on health and schools a future Conservative government would cut spending in other areas by a total of 10% between 2011 and 2015.And he seized on comments by shadow health secretary Andrew Lansley, who said that in order to protect spending on health and schools a future Conservative government would cut spending in other areas by a total of 10% between 2011 and 2015.
'10% cuts''10% cuts'
Mr Lansley said the Conservatives had been working from the government's own figures released at the time of the Budget, which showed departmental spending - rather than the overall headline figure for public spending - would be cut in real terms by 7%. Mr Lansley said the Conservatives had been working from the government's own figures released at the time of the Budget but Mr Brown taunted Mr Cameron, saying he had "better admit" that he wants to cut expenditure by "10%".
But at prime ministers' questions, Mr Brown taunted Conservative leader David Cameron about cuts, saying he had "better admit" that he wants to cut expenditure by "10%".
"The public will remember one thing about the last week - 10% cuts in public expenditure under the Tories, investment under Labour," Mr Brown told on MPs on 17 June."The public will remember one thing about the last week - 10% cuts in public expenditure under the Tories, investment under Labour," Mr Brown told on MPs on 17 June.
I wasn't misled Vince CableLiberal Democrats Tories plan early defence reviewI wasn't misled Vince CableLiberal Democrats Tories plan early defence review
The prime minister's spokesman would not comment on the leaked document, saying there were "a number of documents that would be around that would have within them assumptions at various stages of the planning process".The prime minister's spokesman would not comment on the leaked document, saying there were "a number of documents that would be around that would have within them assumptions at various stages of the planning process".
He told reporters: "The most important point is that there are no plans for departmental spending beyond the current spending review period."He told reporters: "The most important point is that there are no plans for departmental spending beyond the current spending review period."
Asked whether Mr Brown had misled Parliament, he said: "The prime minister has been entirely consistent in what he has said about the spending review and the implications of the spending review."
He added: "It is an obvious statement that the prime minister would never mislead Parliament, clearly."He added: "It is an obvious statement that the prime minister would never mislead Parliament, clearly."
The Liberal Democrats' Treasury spokesman Vince Cable told the BBC the Conservatives were trying to "make a big political issue out of this".The Liberal Democrats' Treasury spokesman Vince Cable told the BBC the Conservatives were trying to "make a big political issue out of this".
"I wasn't misled. I think we all realised, who have studied government documents, that cuts were on the way," he said."I wasn't misled. I think we all realised, who have studied government documents, that cuts were on the way," he said.
"It was all very clear, it was all very much on the record. The government, particularly Gordon Brown, were a bit silly in refusing to use the word 'cuts' but it's been clear to everybody that cuts were on the way and the issue is when, how and where?""It was all very clear, it was all very much on the record. The government, particularly Gordon Brown, were a bit silly in refusing to use the word 'cuts' but it's been clear to everybody that cuts were on the way and the issue is when, how and where?"
'Tough squeeze'
Robert Chote, director of the Institute for Fiscal Studies, said the leaked document showed the impact of figures published in the Budget on public spending.
Once higher debt interest and social security payments, and other costs outside the government's control, were taken into account, they showed "core Whitehall spending" would fall by 2.9% a year in real terms, over three years, he said.
"That is a tougher squeeze than we have seen at any time since we were negotiating spending plans with the IMF back in the late 1970s," he told the BBC.
The government disputed the IFS's prediction back in April that there would have to be 2.3% real cuts in spending, which Mr Chote said, now appeared to have been not quite "pessimistic enough".
"It really does outline the fact that the government's rhetoric and its arithmetic seem to have been some way apart really since the Budget," he said.