'Our hard decisions'on reducing debt

Gordon Brown said the Government was taking the “difficult decisions” needed to halve the 178bn deficit, decisions the Tories refused to take.

And he stressed that rises in National Insurance and increases in the top rate of tax would help the economy and protect front line public services.

Tory plans to cut the deficit more quickly would only serve to keep Britain in recession for longer, he claimed.

Mr Brown hailed his plan to get the economy back to growth as well as drive down the deficit over time.

He said: “Our deficit reduction plan was the first in the world. It is halving the deficit in four years.

“We are raising your taxes to do it. You will have to pay more in the top rate of tax to do it.

“The pension tax reliefs that were very generous in the past have had to be removed.

“We are raising National Insurance by one per cent to protect our public services so that we can still spend more on health and more on education and more on policing.”

Mr Brown signalled the upcoming pain faced by the public sector, outlining how his plans would see real terms public spending growth of just 0.8 per cent each year.

He added: “We are taking the difficult decisions that the Conservatives refuse to take to halve the deficit over the next four years.”

If you want to halve the deficit more and more quickly you will inevitably hold this country in recession longer.

An incoming Tory government would be ready to put up taxes to get Britain’s soaring deficit under control, Ken Clarke has said. The Shadow Business Secretary said it would be folly to rule out increases alongside reductions in public spending.

Meanwhile, Mr Brown ruled out inviting Opposition leaders to regular “War Cabinet” meetings after David Cameron said he would if the Tories come to power.

The Prime Minister said they were often briefed on Afghanistan and other military matters on Privy Council terms and there was no need for further high-level meetings.

Comment: Page 10.