Labour

Deficit rising because the Government’s economic plan is failing - Leslie

Chris Leslie MP, Labour’s Shadow Treasury minister, responding to today’s public sector finance figures, said:

“These figures show that the deficit is rising because the Government’s economic plan is failing.

“We have the highest ever borrowing for any August and borrowing is up by 22 per cent so far this year compared to the same period last year. With the longest double-dip recession since the Second World War, the Government has borrowed over £10 billion more in the first five months of this year than in the same period in 2011.

“And this is billions more in borrowing not to invest in the jobs of the future, but simply to pay for the mounting costs of economic failure as the double-dip recession leads to higher benefit bills and lower tax revenues.

“By choking off the recovery with tax rises and spending cuts which go too far and too fast George Osborne’s pledge to balance the books by 2015 is already in tatters and there are now serious questions about whether he can meet his debt target. But without urgent action to kick-start our economy the Chancellor will end up borrowing billions more to pay for economic failure and cause yet more long-term damage to our economy.”