Britain's Gordon Brown rules out tax cuts

BRIGHTON, England -- British Chancellor of the Exchequer Gordon Brown has refused to be railroaded into tax cuts, choosing instead to stand on his economic record in the face of a slump in the polls.

The ruling Labour Party has been rocked by opinion polls putting them behind the opposition Conservatives for the first time in eight years.

But Brown dashed the hopes of Labour MPs, nervous about keeping their seats in parliament and hoping for rapid tax cuts to get reluctant voters back on their side.

Brown's message was simple -- lasting prosperity, full employment and an end to poverty were all possible but only if economic stability was maintained.

"There will be no sudden lurch in tax or spending policy, no irresponsible pre-election sprees or pay demands that put youth jobs or any jobs at risk," he told Labour's annual conference in Brighton on Monday.

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The government has been left looking helpless after protesters, demanding lower fuel duty, almost brought the country to a standstill by blockading petrol supplies.

At the conference, trade unions are looking to embarrass the government by forcing a vote demanding the state pension be linked again to average earnings, as it last was 20 years ago.

Brown has refused, fearing a huge bill in the future.

With the state pay-out tied to inflation, it rose by just 75 pence ($1.10) a week this year.

Polls show pensioners deserting Labour in droves. Those same polls put the opposition Conservatives up to eight points ahead, in the lead for the first time since 1992.

Despite clamour for concessions Brown gave away little.

He hinted he would look at fuel duties in his November pre-budget report but placed the blame squarely on rocketing crude oil prices, not the fact Britain has the highest petrol taxes in Europe.

He also confirmed plans, already known, to raise the minimum income guarantee for the poorest pensioners.

Brown's aide said there would be money for all pensioners announced in November. But he would not expand further on the policy.

The only other sweetener was that the government would look at raising the level of the national minimum wage next year.

But he secured a long standing ovation, nonetheless, rising to fever pitch as his new wife, Sarah, took to the platform to kiss the "Iron Chancellor."

Brown turned the full force of his scorn on the Conservatives, saying that when they were in government they had cost millions of people their jobs, run up a 50 billion pounds ($75 billion) deficit and turned boom into bust time and again.

Now they would ruin the economy by cutting taxes at all costs, he said.

"What we rule out is blanket irresponsible tax promises," he said, "we will do nothing that puts this country's stability and public services at risk."

Conservative Treasury spokesman Michael Portillo said Brown's lack of action showed he was arrogant and out of touch.

Evoking the goals of the Labour Party's founders, Brown said his target was: "A Britain where, true to our values, not just a few but everyone has the chance to fulfil their potential and share in national prosperity."

He also quoted late Labour leader John Smith, a party hero. "All we ask to do is serve," Brown said.

Union sources were quick to doubt he had done enough to win over the old age lobby, which now makes up a huge chunk of the electorate.

All eyes are now on Prime Minister Tony Blair's keynote speech on Tuesday, billed as the most important of his life.

Reuters contributed to this report.

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