Top economists back Darling in spending cuts row - papers

More than 60 leading economists have backed Alistair Darling's decision to delay spending cuts until 2011, creating a dividing line within the profession on the crucial general election issue of how to tackle the UK's huge public debt.

Two letters in Friday's Financial Times warn of the risks of damaging Britain's fragile recovery by "reckless" early cuts. They are a riposte to the 20 economists who wrote to The Sunday Times last weekend supporting the Conservative Party's argument that fiscal tightening should start this year. The sharp differences between economists emerged as official data showed the budget deficit surged in January as income tax receipts fell by a fifth, alarming the markets and pushing up yields on government debt. Full story...