PMQs: Time for Brown to rethink his spending plans, says Clegg

12.10.00pm GMT Wed 29th Oct 2008

Nick Clegg questions the Prime Minister on public spending during the recession, and calls for big tax cuts for people desperately in need of help.

Speaking at Prime Minister's question time, Nick Clegg called on Gordon brown to change his spending plans by redirecting money to homes for hard-pressed families, child care and training for people who have lost their jobs.

Read their exchanges below. Click here to read Prime Minister's Questions in full.

Nick Clegg's Questions

Mr. Nick Clegg: As we heard earlier, the Prime Minister does not seem to distinguish between good public spending and bad public spending. At a time when every penny of public money needs to be spent wisely, he wants to waste £13 billion on an NHS computer system that does not work, £12 billion on a surveillance database, which will spy on everybody in the country, and billions more on ID cards. He could redirect all that money to the things that people really need in a recession: homes for hard-pressed families; good child care, so that people can go out to look for work; and training for people who have lost their jobs. At a time when all British families have to rethink their spending plans, is it not time for him to rethink his?

The Prime Minister: I do not recognise the figures that the right hon. Gentleman gives us. The only figure that matters in this debate is that the Liberal party wants to cut £20 billion out of public spending. That would be the wrong course for this country.

Mr. Clegg: This country is in much worse shape than I feared if it has a Prime Minister who cannot tell the difference between redirecting and cutting public money. Grandiose plans for public spending might help in the long term, but low and middle-income families need more money in their pockets right now. Why does he not have the courage to close the multi-billion pound tax loopholes that benefit only the wealthy? That way, he could deliver big tax cuts for people who desperately need help. It would not require extra Government borrowing, it is fair and it would be good for the economy. Why will not the Prime Minister give people on ordinary incomes some of their money back?

The Prime Minister: We have been closing tax loopholes in every Budget for the past 11 years. We are putting an additional amount of money into the economy: 22 million people are getting a tax cut of £120, the winter allowance will be £250 for over-60s and £400 for over-80s, and we are helping low-income families with their fuel bills. The right hon. Gentleman cannot wish away the policy that he announced at his conference: to cut public spending by £20 billion. That is the wrong policy for this country at this time.