Rachel Reeves MP, Labour’s Shadow Chief Secretary to the Treasury, responding to today’s public sector finance figures, said:
“George Osborne is borrowing billions more simply to pay for the cost of his economic failure. Having failed on jobs and growth, the government is now failing on the deficit too with government borrowing so far this year up by £5 billion – a rise of 7.4 per cent.
“With long-term unemployment rising and our economy flatlining, the welfare bill is now soaring while business tax receipts are down. By squeezing families and businesses too hard, choking off the recovery and so pushing borrowing up not down, the government’s economic plan has completely backfired.
“The Chancellor cannot rely on a short term bail out from the Bank of England’s quantitative easing scheme to get him out of his hole. Smoke and mirrors will fool nobody. People will want to see borrowing and debt figures without the impact of a £35 billion transfer of money from the Bank of England so they can make proper comparisons and judgements.
“But most of all we need urgent action from this government to create the jobs and growth that are vital to get the deficit down. Unless they do so they will end up borrowing billions more to pay for economic failure and cause long-term damage too.”