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British budget promises

extra spending but

not "boom and bust"

LONDON: Chancellor of the Exchequer Gordon Brown pledged an extra four billion pounds (6.5 billion euros, dollars) in public spending in his budget statement Tuesday, but insisted he would avoid a return to "boom and bust".

With an eye on the traditional Labour voter, Brown pledged to craft "a stronger, fairer Britain" with reduced taxes for "hard-working families".

But he also sought to present Labour as the party of business and especially the new economy.

The chancellor announced a 12 billion pounds budget surplus and forecast that economic growth this year will rise to 2.75-3.25 percent, while next year, and the year after, it is forecast to be 2.25 to 2.75 percent.

However, he said, "Amid the risks of an uncertain and often unstable global economy, we are determined to mainain our disciplined approach, determined not to make the old British mistakes of paying ourselves too much today at the cost of higher interest rates and fewer jobs tomorrow."

"Britain does not want a return to boom and bust," he added.

As widely anticipated, Brown's budget avoided converting the budget surplus into major tax cuts that could increase inflationary pressures, lead to interest rates rises and fuel on already overly strong pound.

Brown nevertheless promised a series of tax reduction, especially for families and small companies.ÑAFP