Today the Chancellor announced, in his Autumn Statement to Parliament, that he will not meet his original target to balance the country’s books – meaning austerity will be here until 2018.
Slow growth and high unemployment means tax revenues are down and the benefits bill is up. As a consequence levels of borrowing and debt has been revised up.
Commenting on today’s Autumn Statement, Bridget Phillipson MP said:
“The Chancellor’s economic plans are not working. He has been forced to admit that he will not meet his own targets. Prices are rising faster than wages, our economy has flat lined for two years and long term youth unemployment is reaching crisis levels -; over 300 per cent in my area.
“While the government is pressing ahead with a £3 billion tax cut for the highest earners in the country, people across Wearside on low and middle incomes are being hit hard with higher VAT, cuts to tax credits and child benefit.
“We need an economy that grows, where everybody has a stake and where the rewards are fairly shared. Labour’s five point plan for our economy includes using the funds from the 4G auction to build 100,000 affordable homes, bringing forward infrastructure investment, a temporary VAT cut and a bank bonus tax to fund a jobs guarantee for young people.”