Brown fends off criticism over increased borrowing

Chancellor Gordon Brown has defended himself against accusations that he has ‘lost control’ of public finances, following yesterday’s Pre-Budget Report.

The criticism followed his announcement that borrowing will increase to £37bn - £10bn more than his Budget forecast in April.

Mr Brown argued that his spending plans for health and education extend to 2008, and insisted that Britain can afford to make the debt repayments.

‘The right time to borrow is at the time when there is world downturn but it’s also right to borrow when you need to invest in the future’, said the Chancellor.

Mr Brown compared the UK’s debt levels favourably with those of other major countries, and argued that the economy has enjoyed its ‘longest peacetime growth’ since records began in 1870.

However, Shadow Chancellor Oliver Letwin warned that the deficit could threaten Britain’s long-term stability.

Mr Letwin commented, ‘This is a very odd way to conduct affairs. He has spent the money but has not improved the public services. We need fundamental public service reform’.