There’s an ever widening discrepancy between what the Government is saying about the economy and what’s 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”.
This isn’t 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 isn’t what you’d 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 it’s 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 we’ve 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 isn’t an accident - it’s the reality of David Cameron’s “long term economic plan”. But as an economic model it is totally broken. If we carry on like this then borrowing won’t 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 didn’t accept that living standards are falling.
This is worryingly out of touch for the Chancellor of Exchequer. If he doesn’t accept that there is a problem, he’s not even going to attempt to fix it.