Lord Mandelson refuses to use c-word in spending talks

Don't mention the c-word: Lord Mandelson refuses to say the word 'cuts'
12 April 2012

Economic growth is more important than spending cuts to reduce the national deficit, Lord Mandelson declared today.

Despite his speech to the London School of Economics today being spun in advance as setting out a tougher stance on spending control, the Business Secretary did not spell out any cuts.

Instead, he called for more spending to encourage recovery. "Government must actively invest in the economic growth of the future," he said. "It is growth that will be the biggest antidote to debt and will determine how far and fast we are able to pay it down."

Lord Mandelson also repeatedly refused to use the word "cuts" in a BBC interview beforehand. He promised efficiency savings, public service reforms and asset sales — all of which were official Labour policy in the boom years — but not overall reductions. The minister also said he would not rule out a review of the Trident replacement and the controversial ID cards policy.

However, Downing Street quickly made it clear that he was speaking in "generalities" rather than hinting that either of the "big ticket" spending items might be axed.

His speech was also spun as a rebuke to union leaders warning of riots if spending was reduced. Lord Mandelson revived Labour's 1997 pledge to be "wise spenders not big spenders".

The speech prompted Tory charges that the Government was trying to spin itself a tougher image.

Shadow chancellor George Osborne, writing in today's Standard, said: "International confidence is only sustained because people increasingly expect there to be a Conservative government committed to spending control and tackling imbalances."

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