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Osborne denies cuts plan 'gamble' Osborne denies cuts plan 'gamble'
(31 minutes later)
Shadow Chancellor George Osborne has denied he has taken an electoral gamble by announcing big spending cuts, saying he had to be honest with people.Shadow Chancellor George Osborne has denied he has taken an electoral gamble by announcing big spending cuts, saying he had to be honest with people.
He has defended plans to freeze public sector pay, cut tax credits for higher earners and raise the retirement age.He has defended plans to freeze public sector pay, cut tax credits for higher earners and raise the retirement age.
Labour has said the proposals are confused and do not match their pledge to cut the deficit within four years.Labour has said the proposals are confused and do not match their pledge to cut the deficit within four years.
Mr Osborne said more savings would have to be found and honesty was needed as the government had "run out of money".Mr Osborne said more savings would have to be found and honesty was needed as the government had "run out of money".
He told the BBC that the next government would have to make substantial savings and would need the support of the public to carry them out. But independent experts say the Tory plans only scratch the surface of the savings needed to close the gap in the public finances.
Mr Osborne told the BBC that the next government would have to make substantial savings and would need the support of the public to carry them out.
If you won an election in the current economic climate on a false prospectus then it wouldn't be worth governing George Osborne Osborne gambles with cuts plans Anger over pay freeze 'politics' Analysis: Osborne's gambleIf you won an election in the current economic climate on a false prospectus then it wouldn't be worth governing George Osborne Osborne gambles with cuts plans Anger over pay freeze 'politics' Analysis: Osborne's gamble
"I don't think of it as a gamble," he told the Today programme."I don't think of it as a gamble," he told the Today programme.
"Whoever wins the election is going to have to take these choices, anyone who tells you otherwise is frankly lying to you."Whoever wins the election is going to have to take these choices, anyone who tells you otherwise is frankly lying to you.
"And if you won an election in the current economic climate on a false prospectus then it wouldn't be worth governing because you would become so distrusted, so unpopular, so quickly that you wouldn't actually be able to take the country through the economic change that is necessary.""And if you won an election in the current economic climate on a false prospectus then it wouldn't be worth governing because you would become so distrusted, so unpopular, so quickly that you wouldn't actually be able to take the country through the economic change that is necessary."
He added: "I would rather be honest about that before the election than lie to you before the election and then be found out afterwards."He added: "I would rather be honest about that before the election than lie to you before the election and then be found out afterwards."
NHS savingsNHS savings
Mr Osborne contrasted the Tories' candour and commitment to "progressive reform" with what he said was evasiveness about "Labour frontline cuts".Mr Osborne contrasted the Tories' candour and commitment to "progressive reform" with what he said was evasiveness about "Labour frontline cuts".
The "real choices" in British politics were how to protect jobs while getting the public finances under control, he added.
He was asking the public to "accept" that measures such as a one-year pay freeze for most public sector workers were needed.
"If you contrast what I said yesterday with what Alistair Darling and Gordon Brown said a week ago, people will be very clear that there is now an alternative government which has done the serious thinking and serious preparation to be in government," he said.
While there was scope for more "value for money" in the NHS, he promised any savings would be pumped back into the health service to support frontline services.While there was scope for more "value for money" in the NHS, he promised any savings would be pumped back into the health service to support frontline services.
On Tuesday, the shadow chancellor outlined plans to make £7bn in annual savings - equivalent to £23bn over the lifetime of the Parliament - but stressed that "we're all in this together".On Tuesday, the shadow chancellor outlined plans to make £7bn in annual savings - equivalent to £23bn over the lifetime of the Parliament - but stressed that "we're all in this together".
£7bn makes some contribution to that but it's only a small part of the whole Robert ChoteIFS Retirement age: Your stories£7bn makes some contribution to that but it's only a small part of the whole Robert ChoteIFS Retirement age: Your stories
Cash-saving measures include reducing Whitehall costs by a third and axing child trust funds while Mr Osborne insisted that the better-off had to take their share of the pain. Cash-saving measures include reducing Whitehall costs by a third, axing child trust funds and cutting middle income tax credits, with Mr Osborne insisting the better-off must take their share of pain and the most vulnerable will be protected.
"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.
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".
'Big troubles' 'Small list'
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.
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.
Shadow home secretary Chris Grayling said that what Mr Osborne'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". 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.
He added: "If we don't do this, if we're not honest with you, then we face big troubles ahead." class="lp" href="http://news.bbc.co.uk/1/hi/talking_point/default.stm">HAVE YOUR SAYWe are not in this together, only the working class end up in a mess while the upper class continue toasting with champagneZed Walker, Lancaster class="" href="http://newsforums.bbc.co.uk/nol/thread.jspa?forumID=7074&edition=1&ttl=20091007093249">Send us your comments
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.