Brown mounts fightback after NI row

Prime Minister Gordon Brown answers questions during a press conference in Westminster, central London, as Lord Mandelson and Chancellor Alistair Darling look on
12 April 2012

Gordon Brown has mounted a fightback in the bitter election battle over National Insurance as he came under fire from one the country's most prominent business leaders.

The Prime Minister denounced Tory claims that they could scrap the bulk of the planned National Insurance (NI) rise, saying they were based on flimsy, "back-of-the envelope" calculations which could not be delivered.

But he was accused by Marks & Spencer boss Sir Stuart Rose of insulting the intelligence of business leaders over his charge that they had been "deceived" by the Conservatives over their proposals.

Meanwhile, Tory leader David Cameron announced the backing of another 13 business leaders - including the bosses of Dairy Crest and Logica - taking the total to 81.

Mr Brown insisted that he had not wanted to pick a fight with business, saying that he attached "no blame to the business community".

But he suggested that the business leaders who have come out in favour of the Tory plan did not realise that they would have to find £27 billion in efficiency savings this year to make it work.

Sir Stuart became the latest business leader to voice his irritation over the claim by Mr Brown and Lord Mandelson that they had been "deceived".

"It's unfortunate that we have been dismissed," he told BBC Radio 4's Today programme. "This is an important argument and to insult the collective intelligence of 60-plus chief executives is unhelpful. This is not a political point so much as a point about where tax should be levied. Everybody knows that the country needs to sort itself out and this was a serious attempt to have a voice on the subject."

But Mr Brown said the Conservatives were claiming that they could make £12 billion in efficiency savings this year on top of the £15 billion already pencilled in by the Government.

"What business hasn't been told is that we are already putting in £15 billion of efficiency savings, what they haven't been told is that £35 billion of efficiency savings have been achieved in the last few years," he said. "And what they haven't been told is that you cannot effectively get £27 billion in one year - which is equivalent to half of the education budget - without laying thousands of people off and without losses of businesses and loss of jobs."

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