Mandelson in hint at Labour spending cuts
BUSINESS secretary Lord Mandelson yesterday promised that Labour would be “wise spenders, not big spenders”, as he sought to regain ground lost to the Conservatives ahead of next year’s general election.
Reviving a slogan last used in Labour’s 1997 electoral campaign, Mandelson attacked the opposition, whom he said would hamper economic recovery by withdrawing stimulus measures too early.
“At the G20 finance minister’s meeting there was unanimity that the stimulus should continue,” said the business secretary.
“Yet alone, and in their haste for cuts, the Tories are arguing for its immediate withdrawal before recovery is fully under way.”
Mandelson did not lay out a blueprint for cutting the £175bn budget deficit, but signalled spending cuts, saying that the government would look to “prioritise and economise”.
By contrast, he claimed the Conservatives were “foaming at the mouth” to cut public spending, which he said would amount to “economic lunacy”.
Mandelson’s hint at more cautious public spending echoes comments made last week by chancellor Alistair Darling and Prime Minister Gordon Brown, who said the government would have to make “tough choices” about where to allocate funds.
Meanwhile, Brendan Barber, the general secretary of the Trades Union Congress (TUC), has lashed out at what he termed the “obscene joke” of bankers’ bonuses.
Addressing the annual TUC conference in Liverpool, Barber said there would be no recovery until unemployment began to ease and public services were declared safe from cuts.
Barber’s comments came as Compass, the left-leaning think tank, intensified its calls for a High Pay Commission. Compass said there was huge support for a clamp-down on excessive pay.