Gordon Brown is accused of concealing information

Tories have accused Gordon Brown that concealed the actual state of public finances, once passed by the Treasury documents showed that rising interest on public debt and social security outlay may impose the largest cuts in costs from 70 years onwards.
The growing burden of what Brown called „the price of social failure“ has led the Ministry to forecast in April that the departmental budgets in the next cycle will be trimmed by 8.6 percent in the three years up to 2014 but which is quite over previous calculations.
David Cameron said he leaked was disproved by Brown stated before the House of Commons in June: „The only party that offers a reduction in government spending is conservative.“ Disinterment of his satisfaction with the document, however, raises awkward questions and Tories, who promised even deeper cuts and faster than Brown.
According to the Institute for Fiscal Studies (IPhR) of the findings shows that overcoming the gap in public finances will probably require removal of political proud legacy of Brown, who in the past decade increased public spending. The documents make surprisingly gloomy forecasts outlay on social security and assume that costs for servicing the debt is inflation would jump by almost 50 percent between 2010 and 2014
Brown’s spokesman dismissed the Tory claims that the Prime Minister has misled the parliament, although at first glance to contradict his rhetoric of unpublished documents of the April budget.
Based on the accounts of the Treasury IPhR calculated that if Cameron fulfilled its promise to keep health costs and external aid should reduce the money the other departments by 14% just to cover existing state plans. In addition, of course, if you do not raise taxes. This means costs of £ 54 billion in today’s money, which is a budget of nine ministries.
If Cameron adheres to the position for more serious reduction in the deficit of £ 175 billion, it will be close to the impact of the cuts imposed on Britain by the IMF in 70 years. Tory leader escaped the question of how the preceding information will affect his plans for the cost, but Brown is perhaps underestimated the ambitions of Cameron for savings when you call him „Mr. 10 percent.
Finance Minister Alistair Darling has ordered an investigation to the case of export documents, once inflicted blow to the reputation of the government. But Brown admitted in a speech at the congress of trade unions, and that Labor will be forced to resort to redundancies. Earlier IPhR calculated based on data published by the Ministry that it would be necessary to reduce departmental costs by 7%.
New findings show that Darling intends to repeal much of the growth in departmental spending, introduced by Brown after the financial year 1998-99
It does not take into account the effects of the economic cycle IPhR estimated that departmental expenses have increased as a share of national income by 5,9 percentage points between 1998 to 1999 and 2009, 2010 Almost three quarters of this growth will disappear by the end of the next cycle in 2013, 2014, the institute says. Any increases in costs imposed by the Labor Party will be removed in the coming years if the government decided to tackle the rest of the deficit by rolling outlay rather than higher taxes.

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George Parker, Gene Iygalshem, Chris Giles

Financial Times

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