Brown promises 'technological New Deal'

Monday, 24 November 2008 10:33

Gordon Brown this morning promised a technological New Deal for the UK.

Speaking to the Confederation of British Industry (CBI), Mr Brown said: "The way forward is not an isolated initiative. We have a unique opportunity to do in a 21st Century way what the Americans did in the 20th Century with the New Deal.

"Now, at the very moment of an economic downturn, is precisely when we need to invest."

He added how failing to deal with a recession early in a downturn would lead to greater stresses further down the track - as had happened in previous recessions, he explained.

"Extraordinary times demand extraordinary measures," the prime minster said.

Mr Brown sold the current strategy as a test of his own leadership, saying government should not just "muddle along" until the crisis was over.

"It is right to promote action now that prevents permanent damage tomorrow<" the prime minister said.">

Eyes now turn to Alistair Darling who will deliver his pre-Budget report later today - with a series of tax cuts expected.

Mr Brown said fiscal stimulus set to be announced in the pre-Budget report today should form part of an international programme - pointing to measures in the US with a greater budget deficit.

Any tax cuts need to be coordinated internationally argued Mr Brown, as unilateral cuts in one country would lead to the gains leaving the country. The hope is if all countries lower taxes to boost economies, gains will spread across the UK.

Mr Brown's speech also paves the way for more cash to be spent on - or brought for - infrastructure projects. There are even suggestions of major initiatives such as new high speed rail links, along more funds going to house building.

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