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.
That's some guestlist! Stunning images show huge dynastic wedding between Ultra-Orthodox Jewish families which attracted 25,000 guests
'He was always smiling': Lee Rigby named as Woolwich victim
Heathrow airport reopens runways after British Airways plane 'on fire over London' makes emergency landing
Two bailed after arrest over Woolwich attack Twitter comments
Exclusive: Woolwich killings suspect Michael Adebolajo was inspired by cleric banned from UK after urging followers to behead enemies of Islam
- 1 Pope Francis: Being an atheist is alright as long as you do good
- 2 'He was always smiling': Lee Rigby named as Woolwich victim
- 3 'Something passed underneath us, quite close': Airbus A320 has close encounter with UFO
- 4 Lord of the Sings: Sir Christopher Lee, 91, to release heavy metal album
- 5 Two bailed after arrest over Woolwich attack Twitter comments
BMF is the UK’s biggest and best loved outdoor fitness classes
Find out what The Independent's resident travel expert has to say about one of the most beautiful small cities in the world
Nook is donating eReaders to volunteers at high-need schools and participating in exclusive events throughout the campaign.
Get the latest on The Evening Standard's campaign to get London's children reading.
Win anything from gadgets to five-star holidays on our competitions and offers page.