Labour and Lib Dems attack Tory economic policy

Labour and the Liberal Democrats have launched attacks on the Conservatives economic policy.

Speaking at a Labour press conference, Chancellor Gordon Brown described the manifesto published by the Conservatives yesterday as a " document of few words and fewer figures, a shopping list of promises based on sums that cannot and do not add up."

Mr Brown accused the Conservatives of making commitments that totalled £15 billion in additional spending, including plans to spend money on recruiting more police offices, establishing drug rehabilitation places, providing extra school places and introducing plans to link pensions to earnings.

However, the Chancellor said that the Conservatives were also "committed" to £4 billion worth of tax cuts, as well as a reduction of £8 billion in borrowing. Mr Brown said that the Conservatives were " claiming that you can cut taxes, cut borrowing and raise spending all at the same time -- exactly the same mistake John Major made in 1992 when he promised tax cuts, borrowing reductions and spending rises."

Labour today launched a detailed breakdown of the budget plans of Shadow Chancellor Oliver Letwin, which the party claimed posed "an economic risk" to Britain.

Mr Brown said: “When all plans are taken into account, he (Letwin) has a black hole of £18.9 billion in year one, £18.5 billion in year two and £14.4 billion in year three - a black hole which would require either huge spending cuts or increased borrowing, which the Bank of England would have to take into account and puts pressure on interest rates."

The Chancellor also said that of the £35 billion worth of savings identified in the Conservatives James Review, the first £21 billion had already been included in Labour's Gershon Review.

Liberal Democrat Treasury spokesperson David Laws also criticised the Conservative plans, describing them as "implausible and undeliverable". He said: "We don't believe these plans are achievable and nor do the majority of the British public."

Conservative co-Chairman Liam Fox hit back at Labour saying: "While it is flattering for Labour to spend so much time trying to find a chink in the Conservative economic case it is astonishing that, after eight years in power, they can think of no better reason for being re-elected than that they are not us."

Mr Letwin also insisted that the party's spending plans would enable a Conservative administration to cut borrowing, avoid tax rises and reduce the tax burden by £4 billion.

(KmcA)