Wednesday, 30 November 2011

It's hurting but it's not working - Osborne set to borrow £158 billion more

Yesteday was judgement day for David Cameron and George Osborne.

After a year and a half in government, we now know that their reckless gamble with our economy had catastrophically backfired.

With prices rising and unemployment soaring families, pensioners and businesses already know it’s hurting.

And with billions more borrowing than planned to pay for rising unemployment, today we find out the truth - it’s just not working.

Click here to share Labour’s alternative

The Government’s independent budget watchdog said today that the Government will break its promise to balance the books by the time of the general election.

George Osborne is now set to borrow £158 billion more than planned a year ago – the bill for the economic failure, higher unemployment and bigger benefits bill his failed plan has created. And it means £37 billion more borrowing in future years than the OBR’s verdict on the more balanced plan Labour set out before the election and this Government ripped up.

As we warned, trying to cut spending and raise taxes further and faster has been utterly self-defeating.

It didn’t have to be this way. Yesterday was an opportunity for the Government to change course and adopt Labour’s five point plan for jobs.

But instead David Cameron and George Osborne are clinging on to a failing plan – and they’re so out of touch they have decided to hit families hard by cutting tax credits, while refusing to repeat the bank bonus tax as Labour has called for.

Today, we need to show people there is an alternative. Click here to share Labour’s five point plan for jobs

George Osborne should listen not just to Labour but also to the IMF and change course now. Labour’s five point plan for jobs would not fix things overnight – but it is a better way to help hard-pressed families, create jobs and support small businesses. And by getting our economy moving again, it will also help to get the deficit down – and do so in a fair way. Because it cannot be right to borrow tens of billions of pounds to keep people on the dole, when we could be investing to get people back to work.

Protecting our economy, businesses, jobs and family finances is more important than trying to protect a failed plan.