Osborne pledge to cut spending

Published on Sunday 19 July 2009 22:15

GEORGE Osborne has promised a "culture change" throughout government to balance the nation's books, if the Tories come to power.

The shadow chancellor refused to rule out tax rises but said cutting spending was his preferred route to restoring public finances.

He also sounded the death knell for the Financial Services Authority, pledging to abolish the body if the Conservatives win the next general election.

Mr Osborne said there would be a greater role for private firms and charities in providing education and welfare services.

On defence spending, Mr Osborne said there would be "difficult decisions" to be made about the replacement for Trident and the 5 billion aircraft carrier programme.

He said: "I have not ruled out tax rises… but I do think after a decade of overspending, people should not be over-taxed. The bulk of the strain in dealing with this debt crisis has to be cutting public spending, restraining public expenditure growth."

The Tories are due to publish a paper promising the end of the tripartite regulation system set up by Gordon Brown.

Mr Osborne said: "We are going to abolish the Financial Services Authority, put the Bank of England in charge of regulating our banks, our building societies and other significant financial institutions."

Chief Secretary to the Treasury Liam Byrne said: "David Cameron and George Osborne can talk all they like about banking reform, but when it mattered, they showed their inexperience and called it wrong."