Labour

Treasury select committee Tory's comments on temporary VAT cuts give the lie to Govt's claims - Reeves

Rachel Reeves MP, Labour’s Shadow Chief Secretary to the Treasury, said in response to Conservative MP David Ruffley’s interview on the Today programme and today’s ONS figures confirming the UK economy has grown by just 0.5% in the last 12 months:

“These comments from a senior member of the Treasury select committee give lie to the Prime Minister and Chancellor’s ludicrous claims about what would happen if the Government changed course.

“The IMF said earlier this year that if the economy continues to underperform the Government should introduce temporary tax cuts and it is welcome that Conservative MPs are now finally joining Labour in making this case too. In his autumn statement next week the Chancellor should listen and act.  
 
“There is now growing support for Labour’s five point plan for jobs. Conservative MPs are backing our call for a temporary VAT cut to boost the economy and help hard-pressed families. The CBI and British Chambers of Commerce are calling for infrastructure investment to be brought forward. And the Federation of Small Businesses is backing our plan for tax breaks for small firms that take on extra workers.
 
“Spending cuts and tax rises that go too far and too fast have choked off the recovery, pushed up unemployment and will mean at least £46 billion more borrowing than planned. With our economy flatlining for over a year, well before the eurozone crisis, it is now time for action not excuses from this out of touch government.
 
“First they blamed the snow, then they blamed the eurozone and now they’re looking to blame public sector workers worried about their pensions. When will this government start taking responsibility for the failure of their economic policy?”