Cameron attacks PM's public spending 'lies'

David Cameron and Gordon Brown clashed repeatedly during Prime Minister's Question Time as the Conservative leader attacked the Prime Minister for claiming that government capital spending would rise every year between now and the Olympics.

Mr Cameron said Mr Brown should apologise and read out Budget statistics projecting expenditure of £44bn this year, followed by £36bn next year, £29bn in 2011 and £26bn in 2012."You have been caught absolutely red-handed," Mr Cameron told the Prime Minister. "You made a statement to the House about capital expenditure growing every year and the fact is it is being cut."

In bruising exchanges, Mr Cameron, jabbing the dispatch box, said Mr Brown had been caught out but was not a "big enough man" to admit it.

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The Prime Minister angrily retorted that public spending had been brought forward because of the recession and insisted it would continuing rise until 2012. But for the first time he acknowledged that it would fall after that year under existing plans. He accused the Tories of planning 10 per cent cuts in public spending.

As the row escalated, new Speaker John Bercow intervened to calm things down, saying: "There is simply far too much noise. The public doesn't like it and neither do I."

Mr Cameron said: "Last week you told the House that capital expenditure will grow until the year of the Olympics. The Government's own figures show that is just not the case.

"Will you take this opportunity to correct what you told the House last week?" Mr Brown replied: "Yes. In the building of the Olympics capital investment will rise very substantially.

"I can tell you that capital investment is rising from £29bn to £37.7 bn and then to £44bn in 2009-10 and that is to help complete the building of the Olympics."

To Tory jeers, he added: "Thereafterwards it will fall as a result of decisions that we made."

Mr Cameron retorted: "That is just not good enough. Last week you made a clear statement to the House. You said capital expenditure will grow until the year of the Olympics.

"Here are the figures – capital expenditure this year, 2009, is £44 bn. Next year, 2010, it is £36bn. The year after, 2011, it is £29bn and in the year of the Olympics, 2012, £26bn.

"That is a cut of almost half from £44bn to £26bn. So will you now apologise, correct your statement and admit you are cutting capital expenditure?"

Mr Brown replied: "I was just explaining how we had brought forward capital investment to last year and this year.

"The figure in 2006-07 for capital investment was £26bn. It has risen to £38 bn in 2008-09 and to £44bn in 2009-10.

Mr Cameron stepped up again: "If you believed in transparency and honesty and truth in public life, you would get up and say 'I'm sorry. I got it wrong. I gave the wrong figures. Here are the right ones.' Now do it!"

Nick Clegg, the Liberal Democrat leader, joined the attack on Mr Brown urging him to add that he was "wrong on public spending".

The Prime Minister replied: "I am not wrong on public spending – we want to increase public spending and I'm not wrong on wanting to help people in difficulty in the recession by helping the unemployed, by helping homeowners."