Cameron in Retreat Over Public Spending Cuts
Conservative Party Leader Says No to 'Swingeing Cuts'
David Cameron has quelled his desire to slash public spending by saying that he would not make ‘swingeing cuts’ if the Conservatives win the general election.
In an interview with the BBC Cameron said that he would be ‘making a start’ to reduce the current deficit which has been interpreted as a more sedate tone over cuts.
Although he reiterated that cuts would have to be made but over the course of a five year parliament to avoid ‘a Greek style budget crisis’.
The comments will back up remarks made by his Business Secretary Ken Clarke in the timesonline.co.uk last week that cuts should not be made that could damage recovery.
http://britishaffairs.suite101.com/article.cfm/clarke_comments_reveal_conservative_disunity
Last week the UK officially became the last major economy to come out of recession with growth figures of 0.1%.
Whilst Conservative aides are saying that there is no change of direction both Labour and the Liberal Democrats say that the Tories have been proven wrong again on their handling of the recession.
Labour strategists believe that their argument for more progressive cuts to avoid a ‘double dip’ recession is now winning through and leaving the Conservatives having to change tack on their spending plans.
Vince Cable, the Liberal Democrats’ Shadow Chancellor told his party’s website “George Osborne and David Cameron seem to be at sixes and sevens on the crucial question of how the deficit should be addressed.
“The Liberal Democrats have been arguing for some time that there should be five tests on when and how we start to cut. This must reflect the position of the economy rather than political expediency."
World Economic Forum Speech Confirms Cameron Position
However the Conservative leader made a keynote speech at a lunch for British business at the World Economic Forum calling for the UK’s economic reputation to be restored.
It was the first time in six years since the gathering was established that the address was delivered by a Tory politician.
Cameron called for the UK banking system to appeal to global companies and for investors to look at growth plans to be reassured that “the next ten years will not be a repeat of the unsustainable boom in the last ten years. “
He went on to call for action over the UK’s huge current deficit citing other global examples.
“Just look at what happened in the 1990s in Canada, in New Zealand and in Sweden. Each had huge deficit troubles, each dealt with them decisively - and each grew faster as a result. Sweden turned a 10 per cent deficit into a surplus in just five years, staving off a fiscal crisis and helping to deliver years of strong economic growth."
UK Polling Report Predicts Hung Parliament
For the first time since the recession began the ukpollingreport.co.uk has not projected a Conservative victory in the general election and currently predicts a hung parliament.
The last two polls by Mori and YouGov give the Conservatives a lead of nine points and seven points respectively, slipping below the 40% threshold, and short of the 11 point lead they would need for a clear parliament majority.
Both the survey results provide more evidence that support for Cameron is slipping and Labour are eating into the Conservative lead as the election approaches.
Sources: the Times, Conservative Party website, Liberal Democrats' website, UK Polling Report
Cameron Softer on Cuts
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What do you think about this article?
- Clarke Comments Reveal Conservative Disunity
- Darling Rejects Economists Call for Cuts
- Mayor of London Advises Cameron to Cut Budgets
- Voters Pessimistic Over UK Future says Poll
- A Future Hung Parliament in the UK
- Gordon Brown to Target Middle Class in Campaign
- Hung Parliament Is Cloud on Electoral Horizon
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