Friday, 21 October 2011

Why Osborne is wrong on the economy and Labour's response - Ed Balls

Dear Graham

A year ago this week, George Osborne announced the biggest spending cuts and tax rises of any major country.

He boasted that Britain was out of the danger zone. And he claimed austerity would boost confidence, jobs and growth. Do you remember how Tory MPs cheered and waved their papers in glee?

Well I can’t hear anybody cheering now. Because the evidence is mounting day by day that this reckless Tory plan is hurting but it’s not working. Our economy hasn’t grown since this time last year.

Families and pensioners are being squeezed by soaring inflation. And here’s the real scandal: there are now more people out of work than for 17 years – when the Tories were last in. And the result? More people out of work and the dole means it's going to be harder to get the deficit down. In fact, there’s going to be £46 billion more borrowing than the government planned.

There’s got to be a better way.

And that’s why Labour has set out a five point plan for jobs and growth – to help struggling families, get young people into work and support small businesses. If you’re out campaigning this weekend help us get the message out there.

Ed Balls