You are in > manchester.com  > News > Tories will inherit an economic mess says Osborne

Politics

Tories will inherit an economic mess says Osborne

08/09/2008

Shadow chancellor George Osborne has said that Labour's handling of the economy will leave the Tories in a policy straitjacket.

His comments come in an interview with the Guardian newspaper in which he also states that: "One of the things we are very conscious of is that we are probably going to inherit a complete economic mess ... I think we will be shocked by the state of the books when we get there."

Mr Osborne says the Tories are drawing up a new "fiscal framework" which would be judged by an independent panel and would overhaul the way public finance initiatives are measured.

He says he accepts the downturn has consequences for the Conservatives and that a more cautious approach is likely to prompt complaints from Tory hardliners who want immediate tax cuts.

But he also promises that there will be no slashing of public spending saying: "The Tory party is not there to impose impossible public expenditure cuts in an economic downturn: that's not what we believe in."

Mr Osborne says the Conservatives now regard themselves as the greatest champions of progressive politics in Britain adding it is right to tackle "relative poverty", how people's wealth relates to the average, rather than concentrating just on "absolute poverty", simply providing a safety net to catch the poorest.

The shadow chancellor even goes as far as to offer sympathy for his counterpart Alistair Darling's recent comments in his own interview with the paper in which he said Britain is facing "arguably the worst" economic conditions in 60 years.

Mr Osborne says: "I had some sympathy that Alistair Darling was trying to tell the truth. Nevertheless he's the chancellor, and he needs to command public confidence in his ability to manage economic policy. I don't think he commands public confidence at the moment."

His remarks come at a bad time for the government and will undoubtedly be seen as an attempt to overshadow Gordon Brown's continued fightback.

The prime minister was today in Birmingham, with the rest of the Cabinet, where he intends to tell ministers how he plans to overcome the current difficulties faced by the government and economy.

The planned away day for cabinet members - the first time a cabinet meeting has not taken place in London or at the prime minister's residence at Chequers since 1921 - is also intended to highlight what the government is doing about the economic downturn by announcing plans to create one million green jobs by 2028.

Cabinet Office minister Ed Miliband denied suggestions the move was a political stunt, saying it showed the government was focused on listening to people's priorities.

"I don't see it as a cheap gimmick," he told the Today programme.

The economy is clearly now the key battleground for both parties with Labour still attempting to present itself as sympathetic to the problems faced by many families as a result of the credit crunch and world economic conditions. It is unlikely the chancellor will appreciate Mr Osborne's apparent sympathy over his assessment of the economic conditions. Nor is it likely the prime minister will take kindly to the assumption that Mr Osborne will get to "look at the books" any time soon.