11/12/2009

PM 'Not At Odds With Darling'

Gordon Brown has denied he overruled the Chancellor on spending cuts detailed in this week's pre-Budget report.

It was claimed the Prime Minister had stepped in to halt more sweeping cut backs in order to protect front-line services.

However, Mr Brown has insisted he and his Chancellor work "very closely together and continue to do so".

The PM said it was "completely wrong" to suggest he had stifled Mr Darling's attempts to implement tougher measures to reduce the UK's growing deficit.

According to BBC reports, the Treasury had hoped to bring in wider public spending cuts to support government pledges to reduce debt.

Responding to suggestion he had meddled in the issue, Mr Brown said: "You are completely wrong.

"Alistair Darling and I have worked together for many, many years and work very closely together and continue to do so."

The Prime Minister was speaking from Brussels at a joint press conference with French President Nicholas Sarkozy.

He said the pre-Budget report was both a plan for deficit reduction and for getting resources to front-line services.

A Treasury spokesman said it was wrong to suggest there was any disagreement between the Prime Minister and the Chancellor over the content of the report.

According to the Guardian, Treasury officials had hoped to increase VAT above 17.5% next month to bolster public coffers.

It was reported Mr Brown opted to up national insurance contributions instead, fearing a spending tax could hinder economic recovery.

(PR/BMcc)

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