A stronger economy

A stronger economy

The slowest economic recovery in over a hundred years has not only led to a cost-of-living crisis, it has meant the Tories have failed on deficit reduction too.

In 2010 the Tories pledged they’d balance the books by 2015. But they are on course to break this promise, with the deficit set to be £75 billion next year. The Tories are now set to borrow £207 billion more than they planned. As a result of this failure the Tories are also set to miss their own fiscal mandate to get the national debt falling as a proportion of GDP by next year.

Now the Tories are planning cuts for the next Parliament which would take Britain back to 1930s levels of public spending - a time before we even had the NHS. And at the same time they say they want to make £7 billion of unfunded tax cuts. They haven't said whether these will be paid for by higher VAT or by even bigger cuts to public services.

Labour will balance the books where this Government has failed. We will cut the deficit every year while securing the future of the NHS. None of our manifesto commitments will require additional borrowing. Every spending and tax commitment in our manifesto will be fully funded.

A One Nation Labour Government will balance the books, but we will make different, and fairer, choices. We won't go down the Tory road of taking Britain back to 1930s public spending levels which existed before the NHS.

  • We will balance the books: getting the current budget into surplus and national debt falling as soon as possible within the next Parliament.

  • We will fund our promises: every spending and tax commitment in our manifesto will be fully funded.

  • We will change our economy: tackling the cost-of-living crisis with stronger and more balanced growth, including with an £8 minimum wage.

  • We will share the burden fairly: protecting everyday working people by ensuring those with the broadest shoulders bear the greatest burden, by clamping down on tax avoidance, reversing the Tories' tax cut for millionaires, and introducing a Mansion Tax on houses worth over £2 million to help save and transform our NHS.

  • We will cap social security: addressing the root causes of welfare spending by getting 200,000 homes built a year and making tough decisions like scrapping Winter Fuel Allowance for the richest pensioners and capping Child Benefit rises.

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