Clarke: Charge for public services and put up taxes

Former Cabinet minister Charles Clarke today opened Labour tensions by calling for tax increases, deep spending cuts and cash charges to users of public services including the NHS.

Urging Labour to slash state debt, the senior Blairite said the Government would lack credibility if it failed to admit painful measures were needed after the election.

Among them should be "co-payment" for public services which were traditionally free, including health services.

His ideas will infuriate trade union leaders at the TUC next week, some of whom are threatening to cut donations after the Government embarked on deals with the private sector.

Last year, they gave Labour £11.4million - 60 per cent of the party's income.

Writing in Policy Review Magazine, Mr Clarke criticised as "misleading and incredible" Gordon Brown's former claim the election would be a battle between Labour investment and Tory cuts.

Both parties would need cuts and tax rises, he said. "Most people understand hard choices will have to be made but do not appreciate the scale," he said.

Some "big ticket" spending should be dropped including Trident and other defence contracts, he said.