Brown's 'has lost control of the economy'

OPPOSITION parties said Gordon Brown had "lost control" of the economy today after it was reported the Treasury was rewriting his fiscal rules to allow the Government to increase borrowing.

Officials were drafting a looser framework, it has been reported, so that the Treasury would not have to break the present borrowing limit of 40 per cent of national income.

The rules were laid down by Mr Brown as Chancellor as soon as Labour came to power in 1997 in an effort to assure the party's reputation for economic competence.

But with the Government predicted to face an £8 billion tax revenue shortfall because of the economic downturn, they appear set to be breached soon.

Liberal Democrat Treasury spokesman Vince Cable said policy should be put in the hands of an independent body to stop the Government "fiddling" the figures.

"The fiscal rules have no credibility when the Government keeps fiddling or changing them," he said.