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Friday, March 12, 2010

UK Liberal Democrats To Emphasize Need For Fiscal Responsibility

By Ainsley Thomson

Dow Jones Newswires

LONDON -(Dow Jones)- Vince Cable, economic spokesman for the smaller U.K. opposition party, the Liberal Democrats, on Saturday will charge the main U.K. opposition part, the Conservatives, of wanting to create a financial panic and a run on sterling to frighten people into voting for them.

Speaking at the Liberal Democrat spring conference in Birmingham this weekend, Cable will emphasize the need for fiscal responsibility.

"Playing fast and loose with the financial stability of this country for political gain � destabilising the markets � is dangerous, irresponsible and wrong," Cable will say, according to text of his speech.

Cable will also say the U.K. public will accept austerity for a time if the burdens are fairly shared.

"They [public] will not accept it from a Government that imposes hardship on the majority while rewarding rich cronies, grovelling to tax exiles and non-doms and ignoring the widening inequalities in income and wealth," Cable will say.

Nick Clegg, leader of the Liberal Deomcrats, has said in interviews that his party will only use spending cuts, not tax increases, to tackle the U.K.'s budget deficit.

Attention has focused on the Liberal Democrats in recent weeks after opinion polls indicted the increasing likelihood that the election, which must be held by June 3, will result in a hung parliament. If that scenario materializes it could see the Liberal Democrats hold the balance.

Clegg also outlined the four requirements if his party is to support either Labour or the Conservatives.

The Liberal Democrats will demand tax reform, education reform, moving to a greener economy and "radical political reform."

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