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Tories defend debt-cutting plans Tories defend debt-cutting plans
(10 minutes later)
The Conservatives have been defending their plans to reduce the UK's national debt, set out at the party conference.The Conservatives have been defending their plans to reduce the UK's national debt, set out at the party conference.
Shadow chancellor George Osborne told delegates he would freeze public sector pay, cut tax credits for higher earners and raise the retirement age.Shadow chancellor George Osborne told delegates he would freeze public sector pay, cut tax credits for higher earners and raise the retirement age.
Chris Grayling, the shadow home secretary, said Mr Osborne was being honest about what needed to be done.Chris Grayling, the shadow home secretary, said Mr Osborne was being honest about what needed to be done.
But Treasury chief secretary Liam Byrne said the Tories had not matched a government pledge to halve the deficit.But Treasury chief secretary Liam Byrne said the Tories had not matched a government pledge to halve the deficit.
At the Conservative conference in Manchester, the shadow chancellor also outlined plans to target Whitehall costs and axe child trust funds for the better off.At the Conservative conference in Manchester, the shadow chancellor also outlined plans to target Whitehall costs and axe child trust funds for the better off.
He told the Tory conference "we're all in this together" and said that the measures would save £7bn a year.He told the Tory conference "we're all in this together" and said that the measures would save £7bn a year.
Pension capPension cap
Mr Osborne said he wanted to be straight with voters about the scale of cuts needed and repeatedly said that the better-off must take their share of the pain.Mr Osborne said he wanted to be straight with voters about the scale of cuts needed and repeatedly said that the better-off must take their share of the pain.
"I don't believe in balancing the budget on the backs of the poorest," he told the party faithful in Manchester."I don't believe in balancing the budget on the backs of the poorest," he told the party faithful in Manchester.
His proposed public sector pay freeze - which exempts the frontline military and anyone earning less than £18,000 a year - goes further than the one announced by Labour on Monday, which will be restricted to GPs, judges and other high earners.His proposed public sector pay freeze - which exempts the frontline military and anyone earning less than £18,000 a year - goes further than the one announced by Labour on Monday, which will be restricted to GPs, judges and other high earners.
George Osborne: "We will cut the pay of ministers by 5% next year"George Osborne: "We will cut the pay of ministers by 5% next year"
Mr Grayling said that what the shadow chancellor's speech had done was "say to the public, look, we have a major problem, we have to sort this out, we have to sort it out for the next generation and to keep our country solvent".Mr Grayling said that what the shadow chancellor's speech had done was "say to the public, look, we have a major problem, we have to sort this out, we have to sort it out for the next generation and to keep our country solvent".
He added: "If we don't do this, if we're not honest with you, then we face big troubles ahead."He added: "If we don't do this, if we're not honest with you, then we face big troubles ahead."
The BBC's Nick Robinson said Mr Osborne's speech was a "calculated gamble" that the Tories would be rewarded for honesty about pain ahead.The BBC's Nick Robinson said Mr Osborne's speech was a "calculated gamble" that the Tories would be rewarded for honesty about pain ahead.
But shadow housing minister Grant Shapps said his party recognised the problem and he believed the public did so too.But shadow housing minister Grant Shapps said his party recognised the problem and he believed the public did so too.
"We have to face the reality of the financial situation this government's got us into."We have to face the reality of the financial situation this government's got us into.
"They've run out of your money are borrowing from your children and their children."They've run out of your money are borrowing from your children and their children.
'Mainstream middle''Mainstream middle'
Mr Osborne said the measures contained in his speech would, by the end of the next Parliament, be saving £7bn a year in government spending.Mr Osborne said the measures contained in his speech would, by the end of the next Parliament, be saving £7bn a year in government spending.
He said he could not think of abolishing Labour's new 50% tax rate on the rich "while at the same time I am asking many of our public sector workers to accept a pay freeze to protect their jobs".He said he could not think of abolishing Labour's new 50% tax rate on the rich "while at the same time I am asking many of our public sector workers to accept a pay freeze to protect their jobs".
TORY CONFERENCE TWEETS TORY CONFERENCE TWEETS
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Oops! -Daily Mirror has picture of Cameron drinking champagne, breaking rules his own party officials set #cpc09 About 5 hours ago British Jewish group asks Cameron for reassurance over his relationship with Eastern European members of party's group in EU #cpc09 About 7 hours ago getting ready for Conference Talk, BBC News at 7.30 #cpc09 About 9 hours ago Eric Pickles, party chairman, met union leaders in Manchester this afternoon, a Conservative source tells me -wonder how that went? #cpc09 About 11 hours ago PCS union tell me they would strike over Osborne's planned pay freeze #cpc09 About 12 hours ago What is this? Read your stories Oops! -Daily Mirror has picture of Cameron drinking champagne, breaking rules his own party officials set #cpc09 About 5 hours ago British Jewish group asks Cameron for reassurance over his relationship with Eastern European members of party's group in EU #cpc09 About 8 hours ago getting ready for Conference Talk, BBC News at 7.30 #cpc09 About 9 hours ago Eric Pickles, party chairman, met union leaders in Manchester this afternoon, a Conservative source tells me -wonder how that went? #cpc09 About 11 hours ago PCS union tell me they would strike over Osborne's planned pay freeze #cpc09 About 12 hours ago What is this? Read your stories
He also vowed to cut the cost of Whitehall - proposing to slash departmental budgets by a third during the lifetime of Parliament, a move he said would save £3bn.He also vowed to cut the cost of Whitehall - proposing to slash departmental budgets by a third during the lifetime of Parliament, a move he said would save £3bn.
But child benefit will be preserved as a universal benefit and the party would not axe the winter fuel payment or free TV licences for pensioners, he said.But child benefit will be preserved as a universal benefit and the party would not axe the winter fuel payment or free TV licences for pensioners, he said.
Mr Osborne also confirmed plans revealed on Monday to bring forward a rise in the age at which men can claim a state pension to 66 from 2016, up to ten years earlier than planned.Mr Osborne also confirmed plans revealed on Monday to bring forward a rise in the age at which men can claim a state pension to 66 from 2016, up to ten years earlier than planned.
But Robert Chote, the director of the Institute for Fiscal Studies, said the measures outlined by Mr Osborne were just a "small shopping list" and much more would be needed to address the gaps in public finances.But Robert Chote, the director of the Institute for Fiscal Studies, said the measures outlined by Mr Osborne were just a "small shopping list" and much more would be needed to address the gaps in public finances.
Mr Chote added that "£7bn makes some contribution to that but it's only a small part of the whole".Mr Chote added that "£7bn makes some contribution to that but it's only a small part of the whole".
Mr Byrne said the Tories' plans failed to match the government's pledge to halve the deficit in four years.Mr Byrne said the Tories' plans failed to match the government's pledge to halve the deficit in four years.
He added that Mr Osborne's speech had "attacked the mainstream middle while defending a tax cut for the richest families".He added that Mr Osborne's speech had "attacked the mainstream middle while defending a tax cut for the richest families".
Liberal Democrat treasury spokesman Vince Cable said he called the proposals "Lib Dem Lite".Liberal Democrat treasury spokesman Vince Cable said he called the proposals "Lib Dem Lite".
Public sector workers have also warned of strike action over the Conservatives' pay freeze plans.Public sector workers have also warned of strike action over the Conservatives' pay freeze plans.