LONDON, Dec. 3 (UPI) -- British Chancellor Gordon Brown has denied he was overly optimistic about the state of the British economy in Thursday's pre-budget report.
Brown told BBC Radio Friday strong public finances, a stabilizing housing market and a steady, low inflation economy meant he could afford increases in public spending announced in the report.
Economists have reacted with caution to the pre-budget report, casting doubt on Brown's figures and saying his forecast for tax revenues may be an over-estimate.
They say Brown will either have to borrow to fund his spending or raise taxes after the general election next year.
Brown said his spending plans were "affordable" but did not rule out future tax increases.
"No politician should make the mistake ... of saying no matter what the circumstances are, they can make all sorts of guarantees on every individual thing," he said.
"That is not what politicians should do; it would not be responsible to do."
Speaking in Edinburgh Friday, Prime Minister Tony Blair also defended the report.
"The public finances are in good shape, and there is no reason to be deflected from the successful course the chancellor has set," he said.