| MANCHESTER, England
MANCHESTER, England Oct 1 Britain's opposition
Labour Party will on Monday urge the government to build its way
out of recession, using funds from the sale of the mobile phone
spectrum to pay for more than 100,000 cheap homes and a stamp
duty freeze for first time house buyers.
Labour's finance spokesman Ed Balls warned there would be no
"post-election spending spree" if the opposition party won the
next election in 2015 and ruled out any pledges to reverse
specific tax rises or spending cuts, instead promising to
evaluate all spending across government departments.
Britain's Conservative-Liberal Democrat coalition
government, slashing spending to reduce a record budget deficit,
has faced criticism for not doing enough to drag the economy out
Wary of losing the confidence of financial markets, finance
minister George Osborne has decided against any direct stimulus,
choosing instead to offer to underwrite some private funding for
infrastructure projects. Labour has argued for a slower pace of
deficit reduction to give the economy room to breathe.
Balls said 3 billion pounds ($4.84 billion to 6.46 billion)
in expected revenue from next year's auction of the fourth
generation mobile telephone spectrum should be used to kick
start Britain's struggling construction industry, rather than
pay off debt.
"If businesses are going bust, not hiring new workers, you
can't get the deficit down. If the economy's not growing, you
can't get the deficit down," Balls will tell Labour's annual
conference, according to extracts from his speech released in
advance by his office.
"And that is why we must act now to kick-start the recovery,
tackle the causes of rising borrowing and start to make our
economy stronger for the future."
Labour say three billion pounds from the 4G sale would pay
for 100,000 affordable homes and a two-year stamp holiday for
homes costing up to 250,000 pounds.