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Darling's £1 trillion debt gamble | Anatole Kaletsky: a step into the unknown | Millions hit by 'Robin Hood' grab | Mortgages: a bit more time to pay | Why is Britain not emulating the US? | Economists: too little to be effective
The gulf between Labour and the Conservatives deepened this morning as Alistair Darling, the Chancellor, defended his $20billion plan to boost the economy as recession looms while George Osborne, the Shadow Chancellor, derided it as a massive and unjustified gamble.
The pair went head to head in a round of radio and television interviews, justifying their stance and trading blows from afar on who would be worse off once tax rises to pay for the stimulus package kick in.
Mr Darling said that it would be wrong to leave people to sink or swim like the Tories did in the recessions of the 1980s and 1990s - while Mr Osborne said that saddling the nation with £1 trillion of debt would hold back any future economic recovery.
"I think there was a big intake of breath by the nation when they realised what the cost of the last 10 years was and that we are all saddled with a truly huge debt," Mr Osborne told BBC Radio 4.
Minutes later, Mr Darling told the same programme: "I'm not prepared to just let the recession take its course. In the 1980s and 1990s people paid a high price for that, and I'm not prepared to go down that road again."
Mr Osborne claimed that lower and middle income families earning £19,000 or more would be worse off after a 0.5 per cent rise in National Insurance takes effect in 2011, but Mr Darling retorted that the Tories had got their sums wrong and that only people earning more than £100,000 would be affected.
The increase in the personal tax-free allowance for everyone earning less than £100,000 would make up for the higher NI contributions, Mr Darling said.
Questioned on the Today programme, he accused the programme of "running the Tory line", and insisted: "You have to look at the changes across the entire tax system."
Mr Darling acknowledged that, to pay for his fiscal measures, public borrowing would balloon to £118 billion in the next financial year, way above the £38 billion he forecast in March. But he brushed aside any suggestion that the British government was saddling itself with more debt than the economy could bear.
Asked if markets could absorb the additional gilts supply caused by his expanded borrowing, he said: "I’m confident we have made the right judgement, and the government can meet all its objectives and obligations.”
The Conservatives have also complained that the House of Commons will not have an opportunity to discuss Mr Darling's fiscal stimulus package for more than a week, as Parliament is due to rise on Thursday and not return until the Queen's Speech on December 3.

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Surely this crisis has shown the New Labour principles to have seriously faltered. Now they have resorted to taxing the rich (what lost them the 1992 vote) and borrowing to levels that Gordon Brown himself said should be made only to invest.
Nick, London,
Funny, I left Germany 10 years ago to come here to escape 50% tax rates and a govt that couldnt run a budget.
Germany will now have a lower top tax rate than the UK and can provide quality public services with an (almost) balanced budget.
The UK is now just one big mess again. Well done Brown
r wren, london, london
What did Labour hope to achieve with this? Any "savings" are offset by increase in petrol tobacco and alcohol (remember most of Broon's army of benefit layabouts consume all 3). My proposal; Why not a tax holiday of one month for workers? Perfect timing for Xmas Simple, doesn't buy enough votes!
Mike Fuller, Manchester, UK
Brown and Darling seem to assume they have a moral right to our money as taxes. They do not. It is a social contract between the state and the people - we pay tax and they provide services. This government has failed and failed and failed again to meet their end of the social contract
Peter, London,
Small businesses are called"The life blood of the nation." So can someone explain why we are brainwashed on a 24 hour basis by stock market movements? The massive fluctuations of prices demonstrate the irrelevance of what is now a casino bearing little relationship with value or the real economy
peterfieldman, paris, france
We have an unelected Prime Minister who is running an incompetent government, does everyone forget the bad decisions Gordon Brown made when he was Chancellor, ie selling off the country`s gold reserves at a rock bottom price or the fact that he raided peoples pension funds! STOP RUINING THE COUNTRY.
Leroy, London, UK
With an election only 18 months away, Broon is again increasing his client state, who will be told at the election "the Torys will cut your benefits, and he will be believed because the welfare state does need drastic surgery.
This makes me very afraid.
KW, Bognor Regis, England
I note that Brown/Darling is cotradicting Osborne on the claim that those on £19,000+/- will lose out. Do I not remember that B/D also contradicted the claim that removal of the 10p tax band would mean hardship to the poor when it first came out. Tthey are having to recompense
I know who I belie
M. Cawdery, Portadown, Co. UK, EU(thanks to Brown)
Now people go shopping instead of paying their mortgage
so
CEOs award themselves large bonuses due to small increase in spending due to their strategt
so
Bankers award themselves big bonus as it is always "their" idea .
so
People who spend the money in the shops lose house due to foreclosure
jim, london,
This government will bankrupt Britain. Apart from wasting £billions in Iraq/Afghanistan the government still plans to waste further £billions on silly ID cards and prior to 2012 another £9billion+ on the Olympic Games. I wouldn't put these incompetents in charge of a child's piggy-bank.
Rog J, Portsmouth, uk
From what I've been able to gather the increase in duty a fuel, drink and cigs covers the 'stimulus' of VAT for 13 months and then turns into a new Stealth Tax. The remaining tax increases relate to poor financial management through the recent boom years...
Nick, Bedford, UK
Would somebody please explain to me how Mr Darling's proposals will encourage, for example, a construction firm in Bolivia to buy a fleet of JCBs from Uttoxetter? Or an overseas merchant shipping company to place an order with a British shipyard?
M. Anthony, Derby, UK
Does the Debt calculation now include Northern Rock and PFi losses or do those continue to be 'off balance sheet' ?? When the regulator is fiddling this hard it must be hard to know right from wrong - No wonder the banks got away with their financial mismanagement for so long.
Nick, London, Uk