PM to warn of painful spending cuts

| June 7, 2010 | 0 Comments

In a major speech in Milton Keynes this morning, Prime Minister David Cameron is expected to issue a stark warning about the painful spending cuts which his Government is to implement in the years to come.

Mr Cameron is expected to say: “The decisions we make will affect every single person in our country. And the effects of those decisions will stay with us for years, perhaps decades to come.”

He said Britons must be prepared for massive spending cuts and that “every single person” will be affected.

His speech comes ahead of the emergency budget on 22 June, which will see further measures to tackle the £156 billion deficit.

There is speculation that welfare and public sector pay bills are high on the Government’s list for cuts.

Child tax credits for wealthier families are also expected to be curbed.

A rise in VAT has not been ruled out but the Government has already said the majority of its savings will be made by cutting current expenditure rather than hiking taxes.

The new coalition Government has reiterated that its top priority is to implement these tough spending cuts but the British Chambers of Commerce (BCC) recently said the Government should delay making big spending cuts as the recovery is still weak.

Mr Osborne’s predecessor, Alistair Darling, also warned that cutting the deficit too quickly could pose a threat to the fragile recovery.

Furthermore, prior to the general election, the Liberal Democrats said such measures could threaten the recovery but have now endorsed the cuts.

Nick Clegg, leader of the Lib Dems has been accused of “hypocrisy” for backing the massive cuts, after campaigning against them.

Labour leadership hopeful, David Miliband, told BBC One’s Andrew Marr Show yesterday: “I think there’s breathtaking hypocrisy in the interview of Nick Clegg in the Observer today saying he’s going to have progressive cuts, cuts that he argued against while he was campaigning.”

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