Conservatives criticise Brown's Budget

Conservative leader David Cameron has criticised Gordon Brown as a "failed Chancellor" following the announcement of his tenth budget.

Mr Cameron said that Mr Brown had "squandered" taxpayers' money, "blocked" reform of Britain's struggling public services and "smashed" a once-successful pensions system. He said: "Once you cut through all the rhetoric, what we have is a Chancellor who's taxed too much, borrowed too much and is the roadblock to reform. He is a politician completely stuck in the past."

Mr Cameron rejected Mr Brown's claim that the economy was progressing in line with his official growth forecasts. He said: "After ten Budgets we know this Chancellor's budget speeches bear little relation to the Budgets themselves. For example, why did he not say that the savings ratio has fallen to 5.5% or that business investment at 9% is at a record low?

"The tax burden is now at its record level ever in this country, higher than when Denis Healey made the pips squeak."

Mr Cameron concluded: "He's doubled spending on the NHS, but this weekend one hospital sacked almost a thousand staff. Deficits across the NHS have ballooned to almost £1 billion. He's doubled spending on education, but more than half our children leave school without the required standard. Billions raised. Billions spent. No idea where the money's gone. With a record like that, the Chancellor should be running for Treasurer of the Labour Party."

The CBI also said that the business-friendly steps in the Budget "fell short" of the boost for UK competitiveness that business needed. CBI Director-General Sir Digby Jones said: "The Chancellor slapped himself on the back but did little to give a helping hand to those hard-pressed businesses who are currently under the cosh.

"Steps to reduce red tape, expand R&D tax credits and boost UK Trade & Investment have our wholehearted support.

"But business will be disappointed that the opportunity truly to improve UK competitiveness has been lost. UK firms have watched while other countries have reduced business taxes to help their companies compete in this era of globalisation. Yet the UK continues to do the opposite.

"It is vital that the Chancellor reins back on public sector expansion and the promised cuts are welcome. But simply redistributing money within a spiralling budget is not enough."

(KMcA/GB)