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UK parties clash over recovery after GDP data
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UK parties clash over recovery after GDP data
Mohammed Abbas
LONDON
Fri Apr 23, 2010 10:40am EDT
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Britain's Liberal Democrat leader Nick Clegg listens to members of the Infant, Mother and Pre School group at the Community Church in Greenway during an election campaign visit to Bristol, western England April 22, 2010. The Liberal Democrats have doubled their projected vote share in Labour-held marginal constituencies but the swing comes mainly from voters who were previously not sure they would vote, a poll showed on Thursday.
Credit: Reuters/Gareth Fuller/Pool
LONDON (Reuters) - Desperate to avoid an inconclusive May 6 election, Britain's main parties seized on sluggish growth data on Friday to argue over the depth and timing of budget cuts.
World
Prime Minister Gordon Brown and Finance Minister Alistair Darling used lower-than-expected gross domestic product figures to reinforce their argument that it is too early to make cuts to tackle a record budget deficit.
The main opposition Conservatives accused Brown of mismanaging an economy emerging from the worst recession since World War Two. They argue cuts must begin this year in order to maintain market confidence and to avoid a similar fate to that befalling Greece.
Both the Conservatives and Labour want to avoid an inconclusive ballot in which no party wins outright, leading to a so-called hung parliament and coalition rule.
The Conservatives say this would lead to delays in tackling Britain's budget deficit, now at more than 11 percent of GDP, and unnerve markets calling for decisive action.
"If in a hung parliament you have to haggle and bicker ... I think there will be a real danger of endless delay and therefore a real danger that people will lose confidence in what is happening in the UK," Cameron told BBC radio.
Cameron's party has led the polls over the past two years but that advantage has been whittled away in recent months, and Nick Clegg's assured performances in television debates between the party leaders has allowed his centrist Liberal Democrats to gain ground and increased the chance of a hung parliament.
Darling said the official data showing that GDP growth slowed to 0.2 percent in the first quarter reinforced his view that Britain remained on track to grow 1-1.5 percent in 2010, but that meant holding off on deep budget cuts.
Brown, finance minister before taking over as prime minister from Tony Blair in June 2007, drove home the message.
"The dangers of the Conservative policy of cutting... 6,000 million pounds out of the economy, as they propose for an emergency budget in June, are as grave as they are ill-judged," he told reporters.
The Conservatives are seeking to unseat Labour after 13 years in power, and finance spokesman George Osborne used the economic data to criticize Labour plans to raise a payrolls tax.
"These figures are below expectations and they come in a week when unemployment went up again and the government borrowed more than ever before," he said.
TV DEBATE
The third and final leaders' TV debate next Thursday is to focus on the economy, and the three main players will be looking to land a decisive blow after the instant polls showed stalemate after Thursday's debate on foreign policy.
Three polls had Clegg ahead, slightly pegged back from his strong showing last week, while two had Cameron leading.
Polls indicate no one party will muster a majority, a rarity in British politics and a situation that could leave the Lib Dems holding the balance of power.
Markets have been wary of political deadlock complicating efforts to cut the deficit. However, the consensus is shifting to a view that an inconclusive election is not such a bad thing if a government can be formed quickly and a budget passed.
Ratings agency Moody's said on Friday a hung parliament would not necessarily hurt the country's top-notch credit rating given the political consensus on the need to cut the deficit.
"The three main parties broadly agree on the desirability of fiscal consolidation on a scale that, if implemented strictly over the course of the next parliament, would be consistent with the government maintaining its Moody's AAA rating," said Arnaud Mares, Moody's lead UK analyst.
World
Comments
See All Comments (1) | Post Comment
Apr 23, 2010 10:38am EDT
Brown is perjuring himself again to get elected. He is doing what all Labour leaders do, which is bribe the people dependent on state handouts by scaring them with talks of cuts that he won’t make but others will. Only after the election will he reveal his true agenda and implement the cuts he lambasts his opponents for saying they will make.
Brown and co don’t care about the country they just want power. They are a bunch of corrupt criminals who should be shot at dawn.
MagAodh
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