Cameron launches attack on Labour’s ‘reckless’ borrowing
Tory leader David Cameron today challenged the direction of Downing Street's counter-recession strategy, branding it a "reckless" borrowing binge that could actually slow down recovery.
Speaking at the London School of Economics, Mr Cameron said he would cut spending from 2010 onwards, giving voters a "big and profound choice" at the next election.
He accused Gordon Brown of "extreme, reckless action" by allowing debt to soar above a trillion pounds.
Mr Brown's economic policies also came under fire from banks as "conflicting and incoherent". The Council of Mortgage Lenders said members were being subjected to "a tug of war" by policies that were incompatible with each other. At the same time the governor of the European Central Bank, Jean-Claude Trichet, said additional borrowing by governments that were already deeply in debt could harm rather than help their economies.
The triple whammy against the anti-slump strategy unveiled in last month's pre-Budget report came as the Cabinet was briefed that the economic crisis was so grave that there was a risk of "permanent damage" unless the cure prescribed by Mr Brown and Chancellor Alistair Darling was followed.
Downing Street's official spokesman said: "What the Cabinet was unanimously clear about was that failure to take action now would mean a longer, deeper and more protracted recession which could have potentially permanently damaging effects on the British economy."
Mr Cameron said it placed "an unfair burden on our children" and the fear of tax rises ahead would act as a damper on the economy.
The Tory leader re-announced he would curb spending compared with Labour plans from 2010 onwards in an attempt to avoid tax rises.
However, he would not give figures and critics said that Labour's own slower spending plans meant the differences between the parties was minor.
"The knowledge that the debt has to be paid off is undermining people's confidence right now," he claimed. "If the future looks dark, people are likely to be cautious — especially with their money."
