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10/12/2009
'No Budget Electioneering': Darling
Chancellor Alistair Darling has defended his pre-Budget report amid allegations it forms part of Labour's election manifesto.
Tories accused the Treasury of putting forward a "pre-election con" to the public, after it pledged to increase some benefits.
Criticism was squared at Mr Darling when it emerged funding to support the increases only stretched to one year.
However, the Chancellor moved to defend the changes in child and disability payments this morning, insisting they are "not temporary".
He said economic uncertainty had delayed a full review into government spending, but suggested investment in protected frontline services would be "pretty much flat".
Responding to suggestions he has put off announcing spending cuts until after the election, Mr Darling said: "I wanted to do this in an orderly manner but be in no doubt this will mean some pretty difficult decisions are going to have to be made over the next four years."
It was revealed yesterday that a 1.5% rise in child benefits and disability benefits would come into effect from April.
Normally, increases are linked to inflation, but the Chancellor said benefits would have remained frozen due to the negative inflation levels recorded in September.
Tories claimed Treasury documents show benefits would increase below inflation rates in April 2011.
Shadow Chancellor George Osborne said the pre-Budget should have been "honest".
He told the BBC: "We have got to stop having a pre-election con where you put benefits up weeks before a general election and cut them afterwards."
Mr Darling denied the benefit increase was electioneering on the part of Labour, adding the move would be reviewed in 12 months, but will not be reduced.
"Every year the government has to have a review of benefits. In 12 months' time we will look at what the situation is and we will know what inflation is in 12 months.
"The announcement I made yesterday in relation to those particular benefits was for this year," he said.
"I was quite deliberately bringing the thing forward, because otherwise you would have had a situation where these benefits were frozen and I thought that would be a little bit unfair."
(PR/KMcA)
Tories accused the Treasury of putting forward a "pre-election con" to the public, after it pledged to increase some benefits.
Criticism was squared at Mr Darling when it emerged funding to support the increases only stretched to one year.
However, the Chancellor moved to defend the changes in child and disability payments this morning, insisting they are "not temporary".
He said economic uncertainty had delayed a full review into government spending, but suggested investment in protected frontline services would be "pretty much flat".
Responding to suggestions he has put off announcing spending cuts until after the election, Mr Darling said: "I wanted to do this in an orderly manner but be in no doubt this will mean some pretty difficult decisions are going to have to be made over the next four years."
It was revealed yesterday that a 1.5% rise in child benefits and disability benefits would come into effect from April.
Normally, increases are linked to inflation, but the Chancellor said benefits would have remained frozen due to the negative inflation levels recorded in September.
Tories claimed Treasury documents show benefits would increase below inflation rates in April 2011.
Shadow Chancellor George Osborne said the pre-Budget should have been "honest".
He told the BBC: "We have got to stop having a pre-election con where you put benefits up weeks before a general election and cut them afterwards."
Mr Darling denied the benefit increase was electioneering on the part of Labour, adding the move would be reviewed in 12 months, but will not be reduced.
"Every year the government has to have a review of benefits. In 12 months' time we will look at what the situation is and we will know what inflation is in 12 months.
"The announcement I made yesterday in relation to those particular benefits was for this year," he said.
"I was quite deliberately bringing the thing forward, because otherwise you would have had a situation where these benefits were frozen and I thought that would be a little bit unfair."
(PR/KMcA)
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Budget Draws Election Lines
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