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Cameron and Osborne have borrowed more in four years than Labour in thirteen

Theres an ever widening discrepancy between what the Government is saying about the economy and whats actually happening, writes David Ellesmere, Labour Parliamentary Candidate for Ipswich.

 

According to David Cameron everything is fine and the Government is paying down the debt.

 

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This isnt true. David Cameron and George Osborne have borrowed more in the past four years than in the whole thirteen years Labour was in Government.

 

And far from reducing, borrowing is actually increasing. The Government has borrowed £5.4 billion more this year than at the same time last year.

 

This isnt what youd expect if, as we are told, that there more people than ever in work. You would expect income tax receipts to go up and the benefits bill to come down.

 

Neither of these are happening and its because a large proportion of the newly created jobs are extremely low paid. So many of the new workers are paying hardly any income tax and need to claim tax credits and housing benefit to top up their income to something they can actually live on.

 

And weve seen with the recent problems in care homes in Suffolk the wider damage that is being caused by wages being screwed down ever further.

 

This isnt an accident - its the reality of David Camerons long term economic plan. But as an economic model it is totally broken. If we carry on like this then borrowing wont come down and austerity and cuts to services will become a permanent reality.

We need to break out of this vicious downward spiral. A National Minimum Wage of £8 an hour or more like Labour is promising would be a great start.

Is this going to happen under this Government? It seems unlikely.

In a recent interview George Osborne said he didnt accept that living standards are falling.

This is worryingly out of touch for the Chancellor of Exchequer. If he doesnt accept that there is a problem, hes not even going to attempt to fix it.

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