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Clegg in warning over spending cuts

02:05, Mar 16 2010

 

Britain could face massive political and social unrest on a scale similar to Greece if the next government cannot rally the public behind plans to cut the £178 billion deficit, Liberal Democrat leader Nick Clegg is to warn.

In a speech to the Institute for Public Policy Research, Mr Clegg will say a new government could be "torn to pieces" if it tries to "ram through" spending cuts without wider public consent.

According to advance extracts of the speech, he will argue that the scale of the cuts needed to tackle the deficit is so great, it will be essential to engage the public in the process.

If the structural deficit in the public finances is to be eliminated without further tax increases, at some point in the next eight years government spending will have to fall by as much as 10%, he will say.

"That means there is an enormous risk ahead. In a democracy, dramatic change cannot be imposed from above or it will fail. It has to be led by a process of political engagement," he will say.

"You only have to look at the scale of industrial unrest in Greece to see that it is impossible to reduce a public deficit quickly if you do not find a way to persuade people to go along with the process.

"If we do not find a way to take the people of Britain with us on this difficult journey of deficit reduction, we will not be able to make the journey. We will instead follow Greece down the road to economic, political and social disruption.

"If a government tries to ram through major change to public spending solely through the usual Westminster combination of machismo and threats from the whips, it will not only fail, it could find itself torn to pieces."

Mr Clegg will say the Lib Dems' proposed "fair tax" package - raising thresholds while closing loopholes that benefit the wealthy and raising taxes on polluting aircraft - offer a way forward.

"Tax cuts for millions will sweeten the very bitter pill of the largest fiscal contraction in modern history," he will say. "If we do not implement these changes, it will be impossible to rally people behind public sector spending cuts and any serious attempt to cut the deficit will fail."

 
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