Brown Discusses Spending 'Cuts'

Prime Minister Gordon Brown has told union leaders government spending 'cuts' are necessary.

Until now Labour ministers have stopped short of outlining 'cuts', as part of a wider drive to reduce public expenditure, and bolster the indebted state purse.

However, today Mr Brown told TUC delegates that steps will be taken to "cut unnecessary spending on low priorities".

There is no indication as to where cutbacks will be made, however, the PM said Labour would not "support cuts in the vital front line services on which people depend".

"We are doing the right thing to make sure that for the future as we move into a full recovery we will invest and grow within sustainable public finances," said Mr Brown.

Conservatives have attacked the Prime Minister, accusing him of a "full retreat" on spending. Mr Brown has already suggested a Tory alternative would mean "savage" cuts to front line services.

"We faced the Conservative position down and we have been shown to do the right thing by British families and British people," he said.

Earlier this afternoon, he told union bosses government spending will be maintained in the short term to stave off the recession and provide a basis for recovery.

However, the PM conceded it will be necessary to "cut costs, where we can, ensuring efficiency where it's needed, agreeing realistic public sector pay settlements throughout, selling off the unproductive assets we don't need to pay for the services we do need."

Shadow chancellor George Osborne, speaking ahead of Mr Brown's address, said: "We endured months of Labour ministers and Gordon Brown in the House of Commons saying we were bonkers we got it wrong and the like, and look, lo and behold, they have completely collapsed and are in full retreat."

A poll in today's Times newspaper claimed 44% of people trust the Tories to manage budget cuts, compared to 35% support for Labour's handling.

Mr Brown will address the TUC conference after 2.30pm.

(PR/BMcC)