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| Darling denies pre-election 'con' | Darling denies pre-election 'con' |
| (9 minutes later) | |
| Chancellor Alastair Darling has hit back at Tory claims his decision to increase some benefits in his pre-Budget report was a "pre-election con". | Chancellor Alastair Darling has hit back at Tory claims his decision to increase some benefits in his pre-Budget report was a "pre-election con". |
| The claim came after it emerged Mr Darling did not set aside funding to pay for rises for more than one year. | The claim came after it emerged Mr Darling did not set aside funding to pay for rises for more than one year. |
| Mr Darling told BBC Radio 4's Today the increases, in child and disability benefit, were "not temporary". | Mr Darling told BBC Radio 4's Today the increases, in child and disability benefit, were "not temporary". |
| He also defended his decision to delay vital spending decisions until after next year's general election. | He also defended his decision to delay vital spending decisions until after next year's general election. |
| He said he had not carried out a full spending review because of continued economic "uncertainty" but insisted spending growth in non-protected areas would be "pretty much flat". | He said he had not carried out a full spending review because of continued economic "uncertainty" but insisted spending growth in non-protected areas would be "pretty much flat". |
| "I wanted to do this in an orderly manner but be in no doubt this will mean some pretty difficult decisions are going to have to be made over the next four years," he said. | "I wanted to do this in an orderly manner but be in no doubt this will mean some pretty difficult decisions are going to have to be made over the next four years," he said. |
| 'Honest' | 'Honest' |
| How much each department gets will depend on unemployment levels and how much money they have been able to squeeze out in efficiency savings, the chancellor suggested. | How much each department gets will depend on unemployment levels and how much money they have been able to squeeze out in efficiency savings, the chancellor suggested. |
| "Frontline" spending in schools and hospitals will be protected from cuts, he stressed. | "Frontline" spending in schools and hospitals will be protected from cuts, he stressed. |
| In Wednesday's pre-Budget report, Mr Darling announced a 1.5% rise in child benefit and disability benefits from April - just weeks ahead of the expected date of the general election. | In Wednesday's pre-Budget report, Mr Darling announced a 1.5% rise in child benefit and disability benefits from April - just weeks ahead of the expected date of the general election. |
| HAVE YOUR SAYIt makes me angry that bankers will get bonuses when the public sector, who work with the most vulnerable members of society, will receive pay-cuts Rachel Gilroy, Crawley Send us your comments | HAVE YOUR SAYIt makes me angry that bankers will get bonuses when the public sector, who work with the most vulnerable members of society, will receive pay-cuts Rachel Gilroy, Crawley Send us your comments |
| He said he was waving the normal requirement to link the rise to the rate of inflation the previous September, as this would have led to the benefits being frozen because inflation was negative at that point. | He said he was waving the normal requirement to link the rise to the rate of inflation the previous September, as this would have led to the benefits being frozen because inflation was negative at that point. |
| But the Conservatives pointed to Treasury documents suggesting the benefits would rise in April 2011 by less than whatever the inflation rate-linked rise should be. | But the Conservatives pointed to Treasury documents suggesting the benefits would rise in April 2011 by less than whatever the inflation rate-linked rise should be. |
| Shadow chancellor George Osborne, for the Conservatives, said the government's economic plans should be "honest". | Shadow chancellor George Osborne, for the Conservatives, said the government's economic plans should be "honest". |
| 'Electioneering' | 'Electioneering' |
| Mr Osborne told Today: "We have got to stop having a pre-election con where you put benefits up weeks before a general election and cut them afterwards." | Mr Osborne told Today: "We have got to stop having a pre-election con where you put benefits up weeks before a general election and cut them afterwards." |
| But Mr Darling denied "electioneering" with the increases, insisting that the benefits would be reviewed again in 12 months' time and said the extra cash will not be taken back. | But Mr Darling denied "electioneering" with the increases, insisting that the benefits would be reviewed again in 12 months' time and said the extra cash will not be taken back. |
| George Osborne criticised the ''cynical'' pre-Budget announcements | George Osborne criticised the ''cynical'' pre-Budget announcements |
| "I brought forward some of the increases in child benefit and disability benefits - 1.5% - because I thought it would be better to do that rather than have a situation where those benefits were frozen. | "I brought forward some of the increases in child benefit and disability benefits - 1.5% - because I thought it would be better to do that rather than have a situation where those benefits were frozen. |
| "Every year the government has to have a review of benefits. In 12 months' time we will look at what the situation is and we will know what inflation is in 12 months. The announcement I made yesterday in relation to those particular benefits was for this year. | "Every year the government has to have a review of benefits. In 12 months' time we will look at what the situation is and we will know what inflation is in 12 months. The announcement I made yesterday in relation to those particular benefits was for this year. |
| "I was quite deliberately bringing the thing forward, because otherwise you would have had a situation where these benefits were frozen and I thought that would be a little bit unfair. | "I was quite deliberately bringing the thing forward, because otherwise you would have had a situation where these benefits were frozen and I thought that would be a little bit unfair. |
| "A 1.5% increase in benefits I don't think can, with the best will in the world, be called electioneering. | "A 1.5% increase in benefits I don't think can, with the best will in the world, be called electioneering. |
| "It is not a temporary rise, it is a rise we have put in this year and it is not going to be taken back. We will look at it again next year." | "It is not a temporary rise, it is a rise we have put in this year and it is not going to be taken back. We will look at it again next year." |
| 'Foolish things' | 'Foolish things' |
| Lib Dem Treasury spokesman Vince Cable said the government should "spell out honestly to the electorate some of the things that would have to be cut". | Lib Dem Treasury spokesman Vince Cable said the government should "spell out honestly to the electorate some of the things that would have to be cut". |
| Vince Cable: ''We all have to be much more honest with the electorate'' | Vince Cable: ''We all have to be much more honest with the electorate'' |
| He said Mr Darling was right not to "rush into" spending cuts - but he said no areas should be "ring-fenced". | He said Mr Darling was right not to "rush into" spending cuts - but he said no areas should be "ring-fenced". |
| He told Today: "I think the more you impose ringfences and restrictions and sacred cows, the more difficult it is then for everybody else, and often very damaging cuts have to be made elsewhere." | He told Today: "I think the more you impose ringfences and restrictions and sacred cows, the more difficult it is then for everybody else, and often very damaging cuts have to be made elsewhere." |
| He said it was important not to cut indiscriminately in "sensitive" areas such as hospitals and schools, but added: "There are some vast amounts of foolish things that this government has created, these curriculum authorities, an oppressive inspection regime - a lot of these things have got to go and we have got to be very firm about that." | He said it was important not to cut indiscriminately in "sensitive" areas such as hospitals and schools, but added: "There are some vast amounts of foolish things that this government has created, these curriculum authorities, an oppressive inspection regime - a lot of these things have got to go and we have got to be very firm about that." |
| And on health he said: "Vast sums have gone into the health service, it hasn't always been used efficiently and we should be honest enough to acknowledge that there are ways in which this could be done better." | And on health he said: "Vast sums have gone into the health service, it hasn't always been used efficiently and we should be honest enough to acknowledge that there are ways in which this could be done better." |
| Mr Darling is also facing claims his plan to raise National Insurance by an additional 0.5% "will lead to a real cut in health spending" because of increases in its vast wages bill. | Mr Darling is also facing claims his plan to raise National Insurance by an additional 0.5% "will lead to a real cut in health spending" because of increases in its vast wages bill. |
| National Insurance | National Insurance |
| George Osborne said it was "nonsense" for ministers to say they could raise NI and protect NHS budgets because the health service is such a big employer. | George Osborne said it was "nonsense" for ministers to say they could raise NI and protect NHS budgets because the health service is such a big employer. |
| He said the tax would leave the NHS with a £446m-a-year bill. | He said the tax would leave the NHS with a £446m-a-year bill. |
| The government said "difficult decisions" had to be made in order to reduce the UK's £178bn deficit but any spending cuts would come when the economy was growing again. | |
| They also stressed that there would be no cuts to frontline NHS services and any efficiency savings would be reinvested in patient care. | |
| Downing Street said Health Secretary Andy Burnham will later announce an NHS plan, setting out his "vision" for the service for the next five years. | |
| In his pre-Budget report, Mr Darling said there would be a 0.5% rise in National Insurance and a 1% cap on public pay settlements from 2011. | In his pre-Budget report, Mr Darling said there would be a 0.5% rise in National Insurance and a 1% cap on public pay settlements from 2011. |
| The increase, limited to those earning more than £20,000 a year, will hit about 10 million workers. | The increase, limited to those earning more than £20,000 a year, will hit about 10 million workers. |
| According to Treasury estimates, someone earning £30,000 will be £90 a year worse off and someone on £40,000 will be £190 worse off, while someone earning £10,000 a year will be £110 better off. | According to Treasury estimates, someone earning £30,000 will be £90 a year worse off and someone on £40,000 will be £190 worse off, while someone earning £10,000 a year will be £110 better off. |