Mandelson warns of 10-year squeeze on public spending

[TrueBlueTerrier]

http://www.guardian.co.uk/politics/2009 ... ng-squeeze" onclick="window.open(this.href);return false;

Lord Mandelson warned of a 10-year squeeze on state spending yesterday as the government sought to repair public finances in the wake of the economic crisis.

The business secretary would not say where the cuts would come but said frontline services such as police, schools, and hospitals would escape the restraints facing other public services.

He also said the recession was "coming to an end" when he spoke to reporters at Westminster. Mandelson said the priority was still to achieve economic growth, adding that it was important the government to "not lose our nerve".

"I think that the fall in the economy is coming to an end, but the severity is not yet behind us ... Of course we will re-balance public finances in the medium term," he said. "There will be spending choices and a growing need for greater efficiency across the board, and less spending in some programmes." He said there would be "sustained investment in schools, police, hospitals, international aid and frontline services including our country's defences. Our approach will be characterised by a mixture of fairness and responsibility, and that is what you have seen from the government to date.

"Of course we will be operating under greater public spending constraints in the coming decade than we have in the last 10 years and that is why we have to respond to it in the way I have described."

Mandelson conceded: "Labour is without doubt being thoroughly tested by events and our own polling in our party reflects that."

However, he said: "There's no deeply felt or settled embrace among the public of Cameron or his party. That's why I believe the next election is open."

Labour and Conservatives have crossed swords in recent weeks about how severe cuts in public services will have to be.

[flaminmoses]

how does he know this?
is he gonna be the tories pr spin machine?

[BELIAL]

Someone has to pay for all those fat cat bonuses and accountancy fraud. Now lets guess who gets to foot the bill.

[Pinky 1]

If he believes the next election is open, why doesn't he stand as an MP ?
This unelected moron has too much power and influence, abuses it wildly and answers to no one. He's happy enough taking home his fat-cat salary, let him answer to the public at the ballot box ....... :mfo