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No 'excuse' on deficit - Cameron PM rejects Tory deficit pressure
(20 minutes later)
Labour has "no excuse" for not starting to cut the budget deficit this year, David Cameron has said, claiming further inaction will hurt the economy. Gordon Brown has rejected Conservative claims that he is delaying spending cuts needed to tackle the deficit for purely political reasons.
The Tory leader said Labour must "tear up" its plans to increase spending in 2010 and the only reason not to do so would be "naked political calculation". Tory leader David Cameron said Labour had "no excuse" for not starting to cut the budget deficit this year except "naked political calculation".
Shadow Chancellor George Osborne has said he plans to cut the bulk of the deficit during the next Parliament. But Gordon Brown warned the recovery was "fragile" and cuts could cost jobs.
But Mr Cameron declined to spell out the scale of cuts that would be needed. He said he had been "proven right" over his actions in the banking crisis and believed his judgment was right now.
At his monthly press conference, Mr Brown said there was a "consensus" about the need to continue support for the economy and the Conservatives were isolated in their call for spending to be cut.
"I would caution against those who say cuts now would make a difference other than putting the recovery at risk".
He added: "Those parties which propose policies to withdraw the stimulus are the risk to the recovery we are determined to have."
Budget testBudget test
However, in his monthly press conference, he again refused to rule out the prospect of tax rises to help stabilise the public finances.
The Conservatives have said they would go "further and faster" on cutting the deficit than the government - which has said it would halve the deficit over the lifetime of the next Parliament.The Conservatives have said they would go "further and faster" on cutting the deficit than the government - which has said it would halve the deficit over the lifetime of the next Parliament.
Shadow Chancellor George Osborne has said he plans to cut the bulk of the deficit during the next Parliament although Mr Cameron has declined to spell out the scale of cuts that would be needed to achieve this.
Labour says premature cuts could pitch the economy back into recession and plan to increase spending this year.Labour says premature cuts could pitch the economy back into recession and plan to increase spending this year.
It is like your credit card -- the longer you leave it, the worse it gets. David Cameron on the deficitIt is like your credit card -- the longer you leave it, the worse it gets. David Cameron on the deficit
Figures released on Tuesday are expected to show that the economy returned to growth in the last three months of 2009.Figures released on Tuesday are expected to show that the economy returned to growth in the last three months of 2009.
While Mr Cameron said this would be "welcome news", he said it would mean that the government could no longer delay action to tackle the deficit - set to rise to £178bn this year.While Mr Cameron said this would be "welcome news", he said it would mean that the government could no longer delay action to tackle the deficit - set to rise to £178bn this year.
Early action was needed on the issue, he said, and the pre-election Budget - expected in March - would be a "test" of whether ministers were serious about cutting spending.Early action was needed on the issue, he said, and the pre-election Budget - expected in March - would be a "test" of whether ministers were serious about cutting spending.
He said the financial markets needed to know that the government was serious about the issue and failing to tackle the deficit would lead to higher interest rates, taxes and unemployment in the long term.He said the financial markets needed to know that the government was serious about the issue and failing to tackle the deficit would lead to higher interest rates, taxes and unemployment in the long term.
"The government cannot go on hiding from this particularly as it looks like the economy is growing again," he said. "They have no further excuse to delay action except naked political calculation.""The government cannot go on hiding from this particularly as it looks like the economy is growing again," he said. "They have no further excuse to delay action except naked political calculation."
Prison movePrison move
The deficit was the "biggest risk" facing the economy, he said.The deficit was the "biggest risk" facing the economy, he said.
"The risk is what the government is doing, which is just putting off these decisions until the future. It is like your credit card -- the longer you leave it, the worse it gets.""The risk is what the government is doing, which is just putting off these decisions until the future. It is like your credit card -- the longer you leave it, the worse it gets."
Mr Cameron also said the Tories would look at bringing back prison ships if they win the election as part of a pledge to end Labour's early release scheme for prisoners.Mr Cameron also said the Tories would look at bringing back prison ships if they win the election as part of a pledge to end Labour's early release scheme for prisoners.
The early release scheme - which allows non-violent offenders in England and Wales to be freed up to 18 days early to ease overcrowding - undermined the criminal justice system and sent a "dreadful signal" to criminals and the public, Mr Cameron said.The early release scheme - which allows non-violent offenders in England and Wales to be freed up to 18 days early to ease overcrowding - undermined the criminal justice system and sent a "dreadful signal" to criminals and the public, Mr Cameron said.
"I think it is really important that we end early release. Prison ships are a very good way of making sure we can end it in a timely and cost-effective manner.""I think it is really important that we end early release. Prison ships are a very good way of making sure we can end it in a timely and cost-effective manner."
The UK's last floating jail, HMP Weare, was sold in 2005 after eight years holding prisoners off Portland, Dorset.The UK's last floating jail, HMP Weare, was sold in 2005 after eight years holding prisoners off Portland, Dorset.