MercoPress. South Atlantic News Agency

UK prepares for budget deficit and spending debate

Shadow Chancellor of the Exchequer George Osborne said “enough is enough”; it’s time “to ensure the country starts living within its means again”

United Kingdom Chancellor Alistair Darling is set to unveil plans within the next few months to halve the Government's spending deficit over four years, his deputy at the Treasury said.

Chief Secretary Liam Byrne said that the Chancellor would use his Pre-Budget Report in the autumn to spell out plans for paying back some of the massive state debts run up in the battle against recession.

But shadow chancellor George Osborne said that Prime Minister Gordon Brown was still planning a £30 billion increase in public spending. Mr Osborne said it was time to say “enough is enough” and ensure the country starts living within its means again.

Speaking to the summit of G20 finance ministers in London, Mr Brown said that fiscal stimulus packages should continue throughout 2010 until the recovery is securely in place. A premature move to an “exit strategy” would risk tipping the world economy back into recession, he said.

Mr Darling acknowledged in an interview that getting Britain's deficit under control would have to involve “much tighter public spending” as well as an increase in the tax burden.

His comments were seen as marking a shift in Labour strategy for the upcoming general election, moving the party away from the “Labour spending versus Tory cuts” approach previously favoured by Mr Brown.

Mr Byrne insisted that the deficit can be cut while protecting public services.

“In the Pre-Budget Report we will set out in more detail how we will halve the deficit over four years and protect those public services which we think are key to helping people make the most of the future in this country,” he told the BBC