Osborne will change course, says Alistair Darling
Alistair Darling today claims that George Osborne will inevitably have to change course to stimulate Britain's economy.
Writing exclusively in The Independent on Sunday, Mr Darling says the Chancellor is "not daft" and will already have realised that the Government's austerity drive had "choked off" growth. The coalition's rhetoric on the slowdown has already begun to shift to create "wriggle room" to alter its plans, he says.
The remarks come as Mr Osborne faces growing pressure to set out a clear plan for growth at the Tory party conference this week. Andrew Tyrie, the Tory chairman of the Commons Treasury select committee, claimed the Government has "a long way to go to arrive at a coherent strategy" for growth.
A poll of Tory party members for the ConservativeHome website found 42 per cent think spending should be reduced further to cut taxes. Mr Osborne yesterday appeared to rule out tax cuts before 2015. He emphasised the flexibility in his plans, but warned that abandoning his plan would lead to a big rise in interest rates, "the thing that would cripple British families with mortgages, destroy businesses, put people out of work".
With fears of a global recession, the FTSE closed down more than 1 per cent, ending the worst trading quarter in nine years.
Mr Darling, Labour chancellor when Lehman Brothers failed, said countries must "rediscover that spirit of international co-operation" seen in 2008. "We cannot afford to stagnate for a decade or even more," he writes.
- 2 Porn block in India: hundreds of sexual websites banned, internet outraged
- 4 Dutch King Willem-Alexander declares the end of the welfare state
- 5 Gamers confess the worst things they've done in The Sims
Jackie Chan in second place in Forbes' Highest Paid Actors list after magazine includes actors working outside US movie industry
Malaysia issues arrest warrant for Gordon Brown’s sister-in-law after she publishes stories on leader Najib Razak's financial affairs
Natalia Molchanova: World's most successful free-driver is missing and feared dead after disappearing in Mediterranean
Giant Minion terrorises drivers in Ireland as 40ft inflatable blocks traffic on Dublin road
Dutch King Willem-Alexander declares the end of the welfare state
Is Britain really full up? Are migrants taking our jobs? Leading academic answers the most common anti-immigration claims
Calais Migrant Crisis: Deputy Mayor of Calais labels Cameron's use of 'swarm' as 'racist' and 'ignorant'
Chris Leslie: Jeremy Corbyn's anti-austerity agenda will harm the poor, says Labour shadow Chancellor
Landlords renting properties to illegal immigrants to face up to five years in prison
While we fixate on Calais, the Home Office is quietly deporting dozens of migrants on 'ghost flights'
Labour leadership race: Jeremy Corbyn could be the next Prime Minister, says Ken Clarke
£350 p/d (Contract): Guru Careers: A Software Developer / Web Developer (PHP /...
£14000 - £15000 per annum: Recruitment Genius: This is a fantastic opportunity...
£35000 - £45000 per annum: Recruitment Genius: This is an exciting opportunity...
£16000 - £28000 per annum: Recruitment Genius: This award winning Property Man...