Parties clash in chancellors debate

Alistair Darling and George Osborne have traded blows over how to tackle the spiralling deficit in the first ever "chancellors" debate.

In a hard-fought hour-long contest, Mr Darling lambasted the Tories for proposing "premature" spending cuts that "risked tipping us back into recession".

Meanwhile, Mr Osborne branded the Government "wasteful" and pledged to curb planned national insurance rises that will hit people on moderate incomes.

But perhaps the biggest winner from the session was Lib Dem Treasury spokesman Vince Cable - whom the public rated as having put in the best performance, with 36% of public votes, followed by Mr Darling and Mr Osborne on 32% each.

The debate in front of a live audience, hosted by Channel 4, was a precursor to three face-offs between the leaders due to be held when the campaign formally gets under way.

Mr Darling challenged Mr Osborne over proposals that would partly cancel the Government's National Insurance rises planned for next April.

The Tories have claimed the move would save taxpayers earning between £7,100 and £45,400 up to £150 annually and cut employer contributions. It would be funded in the short-term by shaving £6 billion of "waste" from public spending over the next 12 months.

But Mr Darling insisted: "Instead of cutting debt you have promised to change the National Insurance contributions. You are spending nearly £30 billion over a Parliament and you can't identify the credible way with which you can pay for that."

The shadow chancellor hit back by insisting the Government had identified £11 billion of waste but was planning on spending the money elsewhere, and told Mr Darling: "You want to increase the taxes on pretty much every single person here in this room and people watching at home. That is the wrong priority when this country needs to recover."

Mr Cable weighed in by saying: "George, last week you went round denouncing these government-supposed efficiency savings as complete fiction - which, frankly, a lot of them are. You are now using these fictional savings to finance your tax cut. That is utterly incredible."