Government forecast to borrow extra £150 billion because of the higher unemployment and slow growth - Reeves

24 April 2012

Rachel ReevesRachel Reeves MP, Labour’s Shadow Chief Secretary to the Treasury, responding to today’s public sector finance figures, said:

“These figures show that last year George Osborne borrowed £9 billion more than he planned to at the time of his spending review. The Government is now forecast to borrow an extra £150 billion because of the higher unemployment and slow growth their failed economic policies have delivered.

“There do need to be tough decisions on tax, spending and pay. But by choking off the recovery, pushing up unemployment and so borrowing billions more to pay for economic failure, cutting spending and raising taxes too far and too fast has backfired. And this Government’s pledge to balance the books by 2015 is now in tatters.”
Ahead of tomorrow’s GDP figures, Rachel Reeves added:

“Our economy has flatlined since the spending review and George Osborne’s economic mistakes mean this is now a slower recovery than even the 1930s depression. But last month’s Budget, as well as being botched and deeply unfair, failed to come up with the plan for jobs and growth Britain desperately needs right now.
“Recent surveys suggest there has been growth of 0.5 per cent in this quarter and the OBR has forecast 0.3 per cent. But after shrinking at the end of last year these forecasts would mean the economy has barely grown at all over the last six months. If we’re to get unemployment down and so get the deficit down, we cannot afford such sluggish growth. The Government must change course and put jobs and growth first.”