Pound being put at risk - Cameron
Posted: Tue Dec 09, 2008 10:11 am
The government is putting the British economy and currency at risk with its £20bn "borrowing binge", Conservative leader David Cameron has told the BBC.
Mr Cameron said it was a "massive mistake" to plan a short term giveaway only to "whack up taxes later".
He said Gordon Brown's plans could make the recession worse and said he would abandon Labour's 2010 spending plans.
The prime minister says the Conservatives are isolated as most countries support a fiscal stimulus.
He has also accused Mr Cameron of leading a "do nothing" party which would not help people through the economic downturn.
'Whack up taxes'
The government announced a series of measures to try to boost confidence last month, including a cut in VAT from 17.5% to 15% to try to get people spending.
But the chancellor said VAT would go back up after a year and National Insurance contributions would have to rise by 0.5% from 2011.
Mr Cameron told BBC Radio 4's Today programme: "Even though we're borrowing absolutely at the limit, to go out and borrow another £20bn and to have a short-term giveaway, and then to have to whack up taxes later - I think that is a massive mistake. "
He added: "I think that puts the public finances at risk, it puts the currency at risk, it puts the whole economy at risk and I think it will actually delay the recovery."
Mr Cameron is giving a speech to the London School of Economics in which he is stepping up his criticism of the government's "fiscal stimulus" plan to boost the economy.
He told the BBC the government's plans would "load up taxes and load up debt for future generations".
The government says the need for a fiscal stimulus is widely accepted and the Conservatives are isolated in opposing their plans.
On Monday, at a press conference Mr Brown said many European countries were planning a "temporary and affordable fiscal stimulus".
He said the boost would help families and businesses and was "the right thing to do".
Source BBC News
Mr Cameron said it was a "massive mistake" to plan a short term giveaway only to "whack up taxes later".
He said Gordon Brown's plans could make the recession worse and said he would abandon Labour's 2010 spending plans.
The prime minister says the Conservatives are isolated as most countries support a fiscal stimulus.
He has also accused Mr Cameron of leading a "do nothing" party which would not help people through the economic downturn.
'Whack up taxes'
The government announced a series of measures to try to boost confidence last month, including a cut in VAT from 17.5% to 15% to try to get people spending.
But the chancellor said VAT would go back up after a year and National Insurance contributions would have to rise by 0.5% from 2011.
Mr Cameron told BBC Radio 4's Today programme: "Even though we're borrowing absolutely at the limit, to go out and borrow another £20bn and to have a short-term giveaway, and then to have to whack up taxes later - I think that is a massive mistake. "
He added: "I think that puts the public finances at risk, it puts the currency at risk, it puts the whole economy at risk and I think it will actually delay the recovery."
Mr Cameron is giving a speech to the London School of Economics in which he is stepping up his criticism of the government's "fiscal stimulus" plan to boost the economy.
He told the BBC the government's plans would "load up taxes and load up debt for future generations".
The government says the need for a fiscal stimulus is widely accepted and the Conservatives are isolated in opposing their plans.
On Monday, at a press conference Mr Brown said many European countries were planning a "temporary and affordable fiscal stimulus".
He said the boost would help families and businesses and was "the right thing to do".
Source BBC News
