Tory plans for cuts are cross-dressing, says Lord Mandelson
Lord Mandelson launched an attack on George Osborne today, warning that Tory plans to cut public spending were "laughable" and "irresponsible".
In a move that revived memories of last summer's Yachtgate clash, the Business Secretary hit out as the shadow chancellor claimed the Tories were now the best party to protect public services.
Mr Osborne made a speech declaring that Labour was poised to make deep cuts in education and other front-line services because it had failed to implement money-saving reforms.
The Tories, not Labour, were the most "progressive" party in the UK, he told Tony Blair's former favourite think tank Demos. Mr Osborne also said today that the "bulk" of Labour's debt mountain would have to be repaid through "spending restraint" rather than tax rises.
But Lord Mandelson said Mr Osborne's claims were risible. "I think my old friend George Osborne is involved in a bit of political cross-dressing here and I don't think it's going to fool anyone," he said. Moves to cut the public debt were needed once the recession was over, but cutting billions from spending now would have a serious impact on firms, jobs and public services.
"Would they really consider it would be progressive to do that, with the economic and human consequences that their actions would have now? At one level it is laughable. At another, I think it is frankly irresponsible for them even to put forward these ideas." Lord Mandelson said that the heart of public services would be "ripped out by the Conservatives through their spending cuts if they were given half a chance".
He exacted his revenge against Mr Osborne last summer after the shadow chancellor claimed Lord Mandelson had "dripped poison" against Gordon Brown when the pair met in Corfu.
The peer then highlighted Mr Osborne's links to Russian billionaire Oleg Deripaska. Mr Osborne told BBC Radio 4's Today programme: "The bulk of dealing with this huge debt crisis has to come from spending restraint because people should not be overtaxed to pay for Labour's overspending."
