Chancellor says Golden Rule has not been broken and announces plans for "science cities" in the North.
Gordon Brown has claimed that his Golden Rule is being met in this economic cycle by a margin of 拢8bn. In his pre-Budget report the chancellor also claimed the rule would be met in the next cycle.
Brown aid that growth for 2004 would be 3.25% and predicted that 2005 growth was projected at 3 to 3.5%. He said that路public spending would rise to 拢579bn in 2007-08, 拢607bn in 2008-09 and 拢634bn in 2009-10.
Brown also announced that the government was to establish science cities in the North of England through a 拢100m technology investment programme. Brown said the first three sites would be in Manchester, Newcastle and York. Brown also announced a 拢2.5bn investment in science.
Among other measures announced today was a 拢20m fund for the Carbon Trust to develop innovative alternative energy sources and a plan to pilot 'mixed communities' in private estates.
Inland Revenue is also to create a small business unit, which could lead to a 'single tax return' for small businesses.
Brown announced plans for the further location of civil servants outside London including 1,230 from the Ministry of Defence to Yorkshire. A total of 20,000 civil servants would be relocated out of London by 2010.
Shadow chancellor Oliver Letwin branded Brown 鈥淪ir Waste-a-lot鈥� and said that Brown had broken the Golden Rule, and was borrowing to spend rather than invest. He said that independent experts estimated that the Treasury had a 拢10bn shortfall.
The rule states that the government will not spend more than it raises in tax during an economic cycle,
