Brown Plays Down Talk Of An Early Election To Focus On The Economy.

 

UK Prime Minister Gordon Brown has spent the weekend playing down talk of an early General Election and sought to focus on the plans for reviving <?xml:namespace prefix = st1 />Britain’s struggling economy contained in today’s Pre Budget Statement.

There has been widespread press speculation that M r Brown plans to call the next election to coincide with the European elections due to be held in June 2009.

Speaking on BBC Radio 2’s Jeremy Vine Show Mr Brown said: ‘My undivided attention is on the economy, I ‘m not thinking about anything else, it’s 100% of my attention and you can just discount these stories.’ http://bbc.co.uk/1/hi/uk_politics/7742227.stm

The financial stimulus package to be announced in the House of Commons by Chancellor Alistair Darling today is rumoured to contain a 2.5% cut in VAT designed to encourage Britons back to the shops and tax cuts aimed at helping families and low paid workers. The cost of the package is estimated at £16 billion, which will have to be repaid through tax rises after the next election.

Speaking on the BBC’s Andrew Marr programme yesterday Mr Brown said: ‘Everybody generally agrees that fiscal stimulus- and what we mean by stimulus is real help for businesses and families now- has to be substantial to have an impact.’

Interviewed on the same programme Conservative leader David Cameron criticised the levels of government borrowing required by the stimulus package which could top £100 billion in 2009.

He said: ‘I think people are going to be shocked tomorrow when they see the extent of government borrowing.’

Gordon Brown hit back by criticising the opposition’s plans for dealing with the recession  by saying that claiming ‘there is nothing the government can do by spending more or investing more at the moment then that is a gospel of despair for the future.’

The stimulus package was, he said, part of ‘a plan for fiscal security and financial sustainability’ being put into action by his government. http://timesonline.co.uk/tol/news/politics/article5218052.ece

The Chancellor will make his Pre-Budget Statement to the Commons at 3pm today.