–To Cut Support Prematurely Would Risk Recovery
–Says Cutting Deficit Faster Would Risk Recession
LONDON (MNI) – UK Chancellor of the Exchequer Alistair Darling said
Monday night that the priority in fiscal policy has to be to “secure
recovery”.
The world economy has just come “through one of the deepest
downturns” seen in recent years, Darling said during a Channel 4 debate
between the finance spokesmen of the leading political parties.
But Darling said that “to cut away support prematurely would …
risk tipping us back into recession”.
“We have got to ensure we get our borrowing down to cut our deficit
— to do it in a sensible way over a 4-year period to half that sum…”
The debate comes ahead of an imminent general election — expected
to be held on May 6.
Opposition Conservative Spokesman George Osborne promised a public
audit of public sector pensions if elected and also reiterated that the
Conservatives would hand over bank regulation to the Bank of England.
During the debate, Darling once again rejected the idea that some
of the largest banks needed to be cut down in size, insisting that as
far as banks are concerned “size doesn’t matter” and that smaller banks
— such as Northern Rock — had encountered problems during the crisis
as much as the larger banks.
–London newsroom: 4420 7634 1624; email: ukeditorial@marketnews.com
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