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UK 'saddled with decade of debt'.

Europe Intelligence Wire

| November 01, 2008 | COPYRIGHT 2008 Financial Times Ltd. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan.  All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)Copyright

(From The Journal)

Byline: Andrew Woodcock

SHADOW chancellor George Osborne yesterday accused Gordon Brown of deepening the economic downturn by trying to spend his way out of recession.

Mr Osborne said Government plans to stimulate demand would produce debt taking a decade or more to pay off.

Borrowing to pay for a State "spending splurge" was "a cruise missile aimed at the heart of the economy", which could force income tax up 4p in the pound in the long run, he warned.

Drawing dividing lines between Conservative and Labour approaches to the economic crisis, Mr Osborne branded the Prime Minister irresponsible for suggesting the Government could "borrow without limit" to stave off recession.

Voters now had a choice between future Labour tax rises to repay national debt or a Tory "responsible road to recovery" which would eventually cut taxes, he said.

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