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PM to ignore Cameron 'shouting' over deficit

Gordon Brown has dismissed complaints by David Cameron that the government is not doing enough to reduce the country's deficit as "shouting".

Mr Cameron wants the government to do more to tackle a record £178 billion deficit now, but Mr Brown insists such moves would spell disaster.

After accusations that the government was guilty of putting "naked political calculation" ahead of economic interest, the prime minister said the Conservative leader risked international isolation and jeopardising the UK's economic recovery with his policies.

Ahead of official figures out tomorrow that are expected to show the UK came out of recession in the last quarter, Mr Brown said: "I am confident the UK economy is emerging from recession, although volatility in oil prices and the financial sector are risks to growth.

"The UK economy remains fragile and policymakers must remain vigilant. We must reduce our deficits steadily and do nothing this year which would put recovery, growth and jobs at risk here in Britain or in any other country.

"This is view of all leaders and the International Monetary Fund."

Speaking to journalists prior to Mr Brown's regular press conference at Downing St, Mr Cameron reiterated his plan for an emergency post-election Budget should the Tories win to address the country's £178 billion deficit.

"Our recession, the great recession, is the longest and deepest since the war and coming out of recession does not mean that our debt crisis is over," he said, pointing to the highest December borrowing figures on record released last week.

"In fact far from it: Labour's debt crisis is now the biggest threat to our recovery so we will only get this recovery right if we start right now on a proper debt reduction plan."

The Tory leader said Mr Brown's promise to halve the deficit in four years had "failed to convince".

"A key part of any plan is at least some early action to show you are serious in your intent," he continued. "That means some reduction in public spending plans in this coming financial year.

"The government's approach, to coin a phrase, is to do nothing.

"If we are going to have to wait for May for an election and if there is going to be a Budget in March, they need to show how they are going to start now.

"They are about to tell us that the economy is growing so they have no further excuse to delay action except naked political calculation.

"It is time they realised that it is time to do the right thing."

But at his own press conference, Mr Brown hit back, saying the Tory policies of tackling the deficit now would see a return to the "lost generation" of the 1980s and that the next election would be fought on how would offer the best prospects for jobs.

When asked about the risks of not dealing with the deficit, the prime minister, who painted Mr Cameron as "against the world" in his policies, concluded: "My judgment is right... I take the tough decisions when the tough decisions need to be taken."