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Labour attack Tory spending plans

Labour attack Tory spending plans

Labour today described the Conservative manifesto as a “shopping list of promises based on sums that cannot and do not add up”.

Attempting to portray the Conservatives as financially incompetent, Labour leader Tony Blair said their proposals were an “incoherent mess”.

Chancellor Gordon Brown said his counterpart Oliver Letwin would have a “black hole” of £18.9 billion in the first year of a Conservative government, requiring either “huge spending cuts or increased borrowing”.

Mr Brown said the Conservatives were committed to spending an additional £15 billion, along with £4 billion of tax cuts and reducing borrowing by £8 billion.

This was, Mr Brown continued, “exactly the same mistake John Major made in 1992 when he promised tax cuts, borrowing reductions and spending rises”.

The Conservatives hit back, accusing Tony Blair of dressing up “the same old failed lies about Conservative plans in a glossy new cover.” The Conservatives said that Labour could not decide whether its accusation was that the Conservatives would cut spending or increase it.

Conservative leader Michael Howard insisted his party’s plans had been carefully costed, added up and offered value for money.

But Transport Secretary Alistair Darling also claimed that of the £35 billion the Conservatives are planning to save through the James review, £21 billion is from the Government’s own Gershon review.

This money is “not available to be reallocated by the Conservatives since [it is] already included in Labour’s plans [and is] being spent elsewhere,” said Mr Darling. “You cannot spend money twice.”

The Labour party launched a dossier examining the James savings, and Mr Darling said not all of these stood up to scrutiny.

According to the dossier, the Conservatives do not know how they will make the £896.7 million they want to save from the budget of the immigration and nationality directorate of the Home Office; and they want to outsource the rural payments agency even though EU regulations prevent outsourcing cap paying agencies.

“The document we are publishing today highlights many flaws and unanswered questions in James’ claimed savings. Many of these savings are not achievable, so the Tories’ spending plans crumble,” said Mr Darling.

The Liberal Democrats have also attacked the James review. Treasury spokesman David Laws said: “The James Report is implausible in key areas and therefore undeliverable. As a result the Conservative spending commitments cannot be taken seriously by anyone.

“Howard Flight was sacked for saying the James Report had been ‘sieved’. Conservative Shadow Chief Secretary to the Treasury George Osborne’s comments have since confirmed that this was the case.

“Until the full James report is published, we can only presume that the Conservatives have a hidden agenda for government.”