GORDON BROWN was under fire from trade unions last night for imposing ''totally unnecessary'' limits on future Government spending.

The Chancellor made clear there would be no spending bonanza, as he set out strict new guidelines designed to prevent the record deficits that sent the national debt soaring in two recessions since the early eighties.

As part of his long-term campaign to end the boom-bust economic cycle, Mr Brown announced he would seek to secure a Budget surplus in each financial year for the rest of this Parliament.

His message made clear the Government will refuse to be swept off course by the rising clamour for a relaxation on spending limits.

A booming economy has produced a greater than expected stream of revenue for the Treasury, in particular from corporation tax. Combined with reduced unemployment payments, the health of the public finances means the public sector borrowing requirement has been eradicated.

Using his clearest language yet, Mr Brown said: ''Those who said that we would fail to show the necessary discipline in public spending have been proved wrong.

''And discipline is not for one or two years, but must be locked in and continuous so that we can build the platform of stability upon which prosperity depends. This is the way to ensure that Britain will have sustainable public finances over the economic cycle.''

Mr Brown is expected to report next month on the results of the Treasury's year-long comprehensive spending review. Every aspect of public expenditure is being scrutinised in the search for savings and spare funds.

He is committed to finding extra cash for the NHS and schools. Tony Blair has come under fire for failing to deliver on Labour's pre-election pledges on waiting lists and class sizes. The Government is committed to sticking by the spending plans set by the Tories for the first two years of the Parliament.

But with left-wingers and unions demanding what amounts to a spending spree when the two-year moratorium expires next April, Mr Brown has been keen to make clear his intention to con-tinue his clampdown on spending.

Sources close to Mr Brown said he was sending a clear message to the CBI, TUC, and Cabinet colleagues that the Government was sticking to its strict financial discipline.

But the ''Iron'' Chancellor's reassertion of strict discipline dismayed trade unionists, who met with Mr Brown at the Treasury. They appealed for an increase in spending and an end to the squeeze on public sector pay.

Unison General Secretary Rodney Bickerstaffe said it was ''totally unnecessary'' to extend the Tory straitjacket on public spending. He said: ''Public sector workers and those who depend on their services will feel angry and demoralised that their years of austerity are to be extended unnecessarily and unfairly.

''Surplus cash should be used to strengthen our public services. It is no use having a surplus if we still have long hospital waiting lists, large class sizes and teachers, nurses and doctors voting with their feet by leaving their service.''

TUC leaders spent over an hour at the Treasury in talks with Mr Brown and Treasury Minister Alistair Darling, pressing their case for increased spending on public services.

TUC general secretary John Monks described the meeting as ''useful'' and said he expected a further announcement from the Chancellor later in the summer about public spending levels.

''We put our case for increased public expenditure in line with rises in national prosperity. We emphasised we were not asking to breach any of the Chancellor's strongly held views about fiscal prudence. But we do think there is scope for extra spending on health, education and public transport.''

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