Anger over Brown's Budget job cuts

British chancellor Gordon Brown today faced anger over plans to axe tens of thousands of civil service jobs to fund public services.

Union leaders called for urgent talks over the surprise announcement included in yesterday’s Budget.

Almost 42,000 posts will go as part of a highly political package that set the battle lines for the general election expected in little over a year.

Education will be the chief beneficiary with an above-inflation rise of £8.5bn (€12.6bn) over the next three years – a real terms annual increase of 4.4%.

Future rises for defence, transport and the Home Office were also promised despite a freeze across a range of taxes and duties.

Mr Brown told MPs: “The choice in this Budget was whether to cut tax rates or to continue our programme of rising public investment in order to meet the priorities of delivering stability, security and economic strength.”

Unions complained the move was simply designed to “shoot the fox” of shadow chancellor Oliver Letwin.

Mr Letwin has pledge to cut spending by £18bn (€26.7bn) in the first two years of a Tory government and rising to £35bn (€52bn) over the lifetime of the Parliament.

Conservatives concentrated their fire yesterday on Mr Brown’s spiralling government borrowing.

Public borrowing forecasts were up slightly, with debt expected to reach £37.5bn (€55.8bn) this year, falling back to £33bn (€49bn), £31bn (€46bn), £27bn, £27bn (€40bn) and £23bn (€34bn) in the subsequent years.

Tory leader Michael Howard warned the increased borrowing and spending will be paid for in higher taxes after the next election.

“This is a credit card Budget from the credit card Chancellor – a borrow now tax later Budget from a borrow now tax later Chancellor,” he said.

However, an ebullient Mr Brown told MPs public finances were in such good shape he could have afforded to cut taxes if he was not investing in public services.

As it was he offered just one give-away, seeking to defuse the “grey power” revolt over council tax, with an extra £100 (€148) for all over 70s to help pay their bills.

Stamp duty, vehicle excise duty, air passenger duty, betting duties and the duties on spirits, cider and sparkling wine were all frozen, as were corporation tax, capital gains tax, the climate change levy and the aggregates levy.