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Edition: U.S. Article Slideshow Save Email Print Reprints Most Popular Most Shared Volcker: Taxes likely to rise eventually to tame deficit 06 Apr 2010 Iran's president attacks Obama on nuclear "threat" 8:55am EDT Leaked U.S. video shows deaths of Reuters' Iraqi staffers 05 Apr 2010 Magnitude 7.8 quake shakes Indonesia's Sumatra 06 Apr 2010 IRS could tap refunds for health insurance penalties 05 Apr 2010 Volcker: Taxes likely to rise eventually to tame deficit 06 Apr 2010 IRS could tap refunds for health insurance penalties 05 Apr 2010 Iran's president attacks Obama on nuclear "threat" 8:55am EDT Leaked U.S. video shows deaths of Reuters' Iraqi staffers 05 Apr 2010 U.S. forecaster sees increased 2010 hurricane threat 11:10am EDT UK's Brown, Cameron trade blows over economy, defense Adrian Croft LONDON Wed Apr 7, 2010 9:19am EDT < 1 / 2 > View Full Size LONDON (Reuters) - British Prime Minister Gordon Brown and opposition leader David Cameron clashed in parliament Wednesday over the economy and defense in a taste of the arguments set to dominate the campaign for the May 6 election. World A day after Brown set the election date, Conservative leader Cameron accused Brown of wrecking the economic recovery with plans to raise payroll taxes and of failing to give British troops in Afghanistan enough helicopters. Amid noisy shouts from MPs, Brown in turn said the Conservatives would put growth and jobs at risk with their plans for public spending cuts to pay down the gaping budget deficit. The economy and nurturing the fledging recovery are set to dominate the election, in which the Conservatives are bidding to end 13 years of rule by Brown's Labor Party. "This prime minister would wreck the recovery by putting a tax on every job, on everyone earning over 20,000 (pounds or $30,470 a year), a tax on aspiration, a tax on every business in the country -- this government would wreck the recovery," Cameron said, referring to Brown's plans to raise payroll taxes. Brown retorted that to withdraw six billion pounds from the economy, as he says the center-right Conservatives plan to do, would put jobs, businesses and growth at risk. "We cannot cut our way to recovery but we could cut our way to double-dip recession," he said. CHANCE OF HUNG PARLIAMENT While the Conservatives lead in the polls, many surveys suggest they will fall short of a parliamentary majority, resulting in a "hung parliament" that financial markets fear will lack the will to slash a budget deficit forecast at 163 billion pounds, 11 percent of Gross Domestic Product, this year. Brown's last parliamentary question-and-answer session before the election gave the main party leaders the chance to rehearse lines they will use in three pre-election televised debates -- a first for British politics. Nick Clegg, leader of the smaller opposition Liberal Democrats, who could play a "kingmaker" role in forming the next government if there is a hung parliament, attacked Labor. "We all remember back in 1997 the hope and the promise of this new government. Look at them now, you've failed. It's over. It's time to go," he said to loud cheers from opposition MPs. The Conservatives want to go faster and deeper than Labor in cutting spending to rein in the budget deficit. The Conservatives switched focus last week by saying they would exempt most Britons from the planned payroll tax rise, funding the measure through efficiency savings worth an initial 6 billion pounds. Bosses of some of Britain's biggest companies backed the Conservatives over the payroll tax but Brown told GMTV on Wednesday the executives had been "deceived." Cameron repeatedly accused Brown of failing to give Britain's 9,500 troops in Afghanistan enough helicopters when they were sent to combat Taliban insurgents in the southern province of Helmand. Brown denied the charge, saying: "We have done our best to equip our troops and we will continue to do so." (Additional reporting by Matt Falloon, Estelle Shirbon; Editing by Matthew Jones) World More from Reuters No signs of life heard in West Virginia mine MONTCOAL, West Virginia (Reuters) - Drills broke through into a stricken West Virginia mine early on Wednesday but rescuers detected no sign of the four miners missing since an explosion killed 25 people in a major U.S. mine disaster. Troops fire on Kyrgyz anti-government protests, many killed U.S.-Israeli dispute still unresolved: Netanyahu Obama seeks momentum from Russia arms pact signing | Video U.S. forecaster sees increased 2010 hurricane threat Rio tries to restore order amid more rain, 96 dead | Video » More Top News Dear shareholder: We didn't do it Goldman Sachs issued a spirited defense in its annual shareholder letter against allegations it bet against its own clients during the financial crisis. Full Article Bank investors: Show me the money "Too big to fail" in crosshairs Financials James Saft: Nice job, sorry about the pay Just when the jobs situation looks to be making a recovery, another problem rears its ugly head: smaller paychecks. Commentary CEOs of bailed-out banks get raises NY masks deficit by "shuffling" money Economy © Copyright 2010 Thomson Reuters Editorial Editions: Africa Arabic Argentina Brazil Canada China France Germany India Italy Japan Latin America Mexico Russia Spain United Kingdom United States Reuters Contact Us Advertise With Us Help Journalism Handbook Archive Site Index Video Index Analyst Research Mobile Newsletters RSS Podcasts Widgets Your View Labs Thomson Reuters Copyright Disclaimer Privacy Professional Products Professional Products Support Financial Products About Thomson Reuters Careers Online Products Acquisitions Monthly Buyouts Venture Capital Journal International Financing Review Project Finance International PEhub.com PE Week Thomson Reuters is the world's largest international multimedia news agency, providing investing news, world news, business news, technology news, headline news, small business news, news alerts, personal finance, stock market, and mutual funds information available on Reuters.com, video, mobile, and interactive television platforms. Thomson Reuters journalists are subject to an Editorial Handbook which requires fair presentation and disclosure of relevant interests. NYSE and AMEX quotes delayed by at least 20 minutes. Nasdaq delayed by at least 15 minutes. For a complete list of exchanges and delays, please click here.

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