LONDON — British Prime Minister Gordon Brown said Tuesday that it was right for the U.K. to run a large deficit to get through the recession, but an opposition Treasury spokesman was critical, saying spending cuts should have started this year. The U.K. Treasury expects the public sector to run a deficit of some 12.6% of gross domestic product this year, one of the highest levels of any developed economy. The government promises to halve the deficit over the next four years, starting in 2011, but the opposition Conservative Party reiterated that it would start cuts this year. Britain will hold elections some time before June 3. Several ratings agencies have warned the U.K. could see its AAA credit rating downgraded if its deficit plans aren't tightened. "Every country has a higher level of debt because of the recession," Mr. Brown said. The policy "meant that we were able to run a flexible enough policy—with a high deficit—to take us through the recession." He said the government hopes that its plan to halve the deficit in four years is clear enough, adding that he thinks investors "will be satisfied that we are taking the actions necessary.[Read more...]