‘No new spending plans before election’
By Liz Stephens
There will be no new spending plans set out by the government before the next general election, Lord Mandelson suggested today.
In a move that seems to tie the chancellor’s hands over spending, the business secretary said: “The spending period currently operating in government stretches beyond the next election and therefore it is reasonable to review public spending at that time.”
He added that Alistair Darling had already “made that judgment”.
Lord Mandelson was facing questions about government plans as the prime minster prepared to unveil a series of seismic policy shifts later today.
Speaking in an interview with BBC Radio 4’s Today programme, the business secretary said future spending would depend on economic recovery but there would be a “reprioritising of expenditure both within and between departments”.
Gordon Brown would announce “a major boost in the provision of social and affordable housing over the next two years.
“That reflects a switch in spending both within the relevant department but also between the Home Office and the Department for Transport to the other department,” he said.
However, asked if the government planned to trim spending in real terms, he said: “The spending review that will take place after the next election when the current review period has ended will take account of the state of the economy at the time.”
Lord Mandelson also accused the Tories of being committed to cut “come what may” to pay for tax cuts for the rich.
Among the new initiatives to be announced by the prime minister today will be “entitlements” for cancer patients to go private if they cannot be seen by their primary care trust within a two week period.
The changes will be seen as a climbdown by Mr Brown, who previously battled against Blairite efforts to involve the private sector in public services.
The initiative announcements follow a series of dire poll results for Labour and leadership speculation.
