Labour lays out cuts plans
CHANCELLOR Alistair Darling said yesterday he was having “robust” talks with other cabinet ministers over future spending cuts.
He told the International Monetary Fund (IMF) the battle to reduce the deficit would require tough choices, but said Tory plans for immediate cuts risked “crashing the economy”.
Speaking in Istanbul, he said Labour would continue to increase public spending next year, but the VAT rate would definitely return to 17.5 per cent at the end of the year.
The IMF warned that Britain’s recovery prospects looked gloomier than those in the euro zone because growth had depended too much on success in the financial and construction industries.
“A jobless recovery could be on the cards for the UK,” the IMF said.
Darling said he disagreed with the forecast, but was determined Britain would now “live within our means”.