The Liberal Democrats claims a reduction in the growth forecast to 1 per cent from the 1.75 to 2.25 per cent announced in the budget in March would erase the£36bn budget surplus predicted for the next four years.
But speaking from Washington, Mr Brown said his spending plans were 'safe' and could be met without raising taxes.
Mr Brown was also accused of bullying the Bank of England to cut interest rates, a move which meant a cut was now less likely according to Malcolm Bruce, Lib Dem treasury spokesman.
Meanwhile, education secretary David Blunkett has been assured by Mr Brown that£19bn earmarked for education over the next three years is still secure, reports the Guardian (p8).
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