Angela Eagle MP, Labour’s Shadow Chief Secretary to the Treasury, said in response to today’s Government borrowing figures:
“These figures underline the warnings we have made over the last year and the IMF is now making too.
“If you cut spending and raise taxes too far and too fast you get into a vicious circle. That’s because if you choke off the recovery and put tens of thousands of people on the dole, claiming benefits rather than paying taxes, then it’s harder to get the deficit down.
“Even before these figures were released the Government was already set to borrow £46 billion more over the coming years than they planned, because of the slower growth and higher unemployment George Osborne’s failed policies have delivered. But looking at the borrowing figures for the year so far it seems even this revised borrowing target is at risk of being missed this year.
“Families and businesses want to see action now, to get the economy growing and get people back to work, not politicians sitting on their hands. That’s why we urgently need a real plan for jobs and growth, here in Britain and around the world.”