Britain will need to take tough decisions on spending once the economy rebounds but implementing deep cuts now would jeopardise the recovery, finance minister Alistair Darling said on Thursday.
In media interviews the day after he announced tax rises on all but the poorest and slapped a 50 percent levy on bank bonuses, Darling said measures were still needed to prop-up growth. [ID:nGEE5B80Z5]
"I need to make sure that the economy continues to receive the support it needs, for people, for businesses, until we have got recovery established. Now we are not there yet. I am confident we will see growth at the turn of year," he told Sky News.
"But to take away support now prematurely would run the risk of tipping the economy into deeper downturn and that could result in more pain, more borrowing and that would've been totally irresponsible and totally unacceptable."
Facing an election within six months, Darling said the situation was difficult and tough decisions would have to be made. However, in a dig at the opposition Conservatives, he dismissed warnings about long-term austerity.
"I just don't buy this argument that it's going to be some 10 years of austerity and you know, and we should just abandon hope for the future," he told BBC radio.
"That is not the right thing to do. Yes, we have a difficult situation, but at the same time deal with it sensibly, deal with it over a sensible timescale, but at the same time let's remember there are huge opportunities in front of us provided we are ready to take them."
The Conservatives' economics spokesman George Osborne has criticised Darling's pre-budget report for not tackling Britain's ballooning budget deficit and for putting its triple-A sovereign debt rating at risk. [ID:nLAK002514]
Polls suggest the Conservatives are on course to win a general election due by June.
In his pre-budget report on Wednesday Darling announced government borrowing would rise to a record 178 billion pounds this fiscal year but pledged to halve that by 2013-14.
Darling said now was not the time to take drastic measures to cut spending, saying a reduction in borrowing would take place once the recovery was established.
He told ITV's GMTV show: "We've got to make sure at the same time most of the burden is shared by government spending but we have got to raise additional revenue.
"There are some people who say you should go faster and further but that would mean you would have to take another 25 billion pounds or so out of the economy or another 5 pence on VAT if you want to look at it that way.""
