The recent lack of growth has meant the Government is planning to borrow more to pay for the costs of economic failure, with the result that borrowing is now forecast to be £245bn more than planned at the time of the spending review – excluding the one off transfers of the Royal Mail Pension Fund and Asset Purchase Facility. The Chancellor admitted that the Government will not “balance the books” by 2015 as David Cameron has previously promised; national debt as a percentage of GDP is not now forecast to start falling until 2017/18 – further breaking one of the Government’s fiscal rules.
In its first three years the Tory-led Government has spent £7.7 billion less in capital investment when compared to the plans inherited from Labour. And over the course of the Parliament they are set to have spent £2.1 billion less on capital investment than Labour’s plans. What we needed today was a change of direction and bold action to kickstart our flatlining economy and give real help to families on middle and low incomes – not more of the same failing policies and a huge tax cut for millionaires.
Andrew Gwynne MP said:
“The Government’s economic plan is failing. Instead of more of the same failing policies, we need a bold and radical Budget to kickstart our economy and help millions on low and middle incomes struggling with the rising cost of living. Our economy is flatlining, prices are rising faster than wages, the national debt is shooting up and even our triple-A credit rating has been lost. On every economic test this Government set itself, it has failed. It’s no wonder the Cabinet are losing confidence in the Prime Minister and his downgraded Chancellor and openly calling for a change of direction.
“This is a Budget for Tory MPs who want to go back to the Shires and hold up a tax cut on the doorsteps of Millionaire Row. This downgraded Chancellor needs to sort out his downgraded Budget. People in Denton and Reddish want to get back into work, not be hit by his wretched Bedroom Tax which will take money out of the pockets of hundreds of people in our area only to be given to his friends in the City through cuts to Corporation Tax and the top rate of tax.”