No 10 denies rose-tinting pre-Budget report
No 10 denies rose-tinting pre-Budget report
Friday 11th December 2009
Gordon Brown has dismissed claims he interfered in Alistair Darling's pre-Budget report as "completely wrong".Reports on Friday said the prime minister had stepped in to overrule the chancellor, who wanted to announce further cuts to give credibility to plans to halve the deficit by 2014-15.
According to the Guardian, Mr Darling was considering raising VAT above the 17.5 per cent it is due to return to in the new year.
A cap on public sector pay deals and a rise in national insurance contributions in 2011 was announced, however.
But Mr Brown reportedly agreed with his close supporter Ed Balls, the children's secretary, who wanted to create dividing lines with the opposition over education.
The Tories have pledged to increase NHS spending in real terms if they come into government, but have not made any promises on schools.
If the reports are true it appears Mr Balls won through, with Mr Darling announcing a 0.7 per cent increase in school spending.
Speaking in Brussels alongside French president Nicolas Sarkozy, Mr Brown denied overruling No 11.
"Alistair Darling and I have worked together for many, many years, and we continue to do so," the prime minister said.
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