Greater Scrutiny Required of Fiscal Policy

12.00.00am BST (GMT +0100) Mon 20th Jun 2005

Responding to figures released by the Office of National Statistics that show a sharp deterioration in the UK Government's financial plan, Liberal Democrat Shadow Chancellor, Vince Cable MP said:

"These figures add to the growing scepticism that Gordon Brown will fail to meet his 'golden rule'.

"If the 'golden rule' is not going to be met the Chancellor must acknowledge this drift in fiscal policy. He should not be allowed to fudge the rule by changing his definition of the economic cycle.

"The Liberal Democrats propose that the Chancellor allows greater independent scrutiny of fiscal policy to ensure that credibility is maintained. Government assumptions and performance must be independently audited by the National Audit Office, under a much stronger regime than currently applies."