Monday, November 29, 1999

UK govt puts spending cuts before tax rises - Cameron

News posted by

Britain's new government will need to publish a fuller coalition agreement covering a broad range of policies in the next two weeks, Prime Minister David Cameron said on Sunday.In an interview with BBC TV, Cameron also reiterated the government's view that the brunt of action taken to tackle a record budget deficit running at more than 11 percent of GDP would be spending cuts rather than tax rises.Cameron's centre-right Conservatives joined forces with the smaller centre-left Liberal Democrat party after the inconclusive May 6 parliamentary election to form Britain's first coalition government since 1945.The two parties set out an initial coalition agreement on Wednesday, covering decisions in key areas such as the economy, and subjects on which they have radically different views such as immigration, defence and Britain's relations with Europe."We already have a very good coalition agreement ... we were able to look at the difficult areas of policy and agree those first, things like Europe and immigration and taxes, we have already done the heavy lifting," Cameron told the BBC."We need a fuller coalition agreement covering other policy areas as well ... there will be a longer form document out in the next couple of weeks."Cameron said action to cut the record budget deficit would focus on spending cuts rather than tax rises.In a sign of his intention to rein in spending on public sector pay, Cameron said he would cut back the kind of bonuses paid to civil servants by the previous Labour government."For the future we are going to severely restrict them, cut them by something like two thirds," he said."Now that in itself doesn't save a huge amount of money, that saves something like 15 million pounds ... from the large to the small, we are going to take action."(Editing by Tim Pearce)
News posted by
Click here to read more news from
Please follow our blogs



No comments:

Post a Comment