“Never-ending” deficit under Labour, say Tories

THE Tories have put the economy at centre stage in the election warning that Labour would run a “never-ending” budget deficit.

George Osborne speaking in London on 7th April 2015. Picture: AFP

At a press conference this morning the Chancellor George Osborne also unveiled figures which suggested that Gordon Brown’s government added £1,900 on average to the tax bill for each household in the UK.

Mr Osborne claimed that Labour plans to balance the budget means it would have to borrow an extra £30 billion a year to fund capital spending on one off projects.

This is because Labour has made no suggestion that it is against Tory plans to spend £30 billion a year on capital investment from 2018 and so will borrow the money every year, Mr Osborne claimed.

The Chancellor claimed this would create a permanent deficit.

At a Westminster briefing, the Chancellor said: “When the economy’s growing, and we’re not in recession, we should be raising more than we spend.

“That’s the way, proven around the world, to bear down on your national debt and best prepare yourself for any future economic storms.

“Fixing the roof while the sun is shining.

“The Labour Party don’t want to do that, they only talked about balancing the current, day to day, spending while continuing to borrow to pay for capital spending.

“What they don’t tell you is that means a permanent, never-ending budget deficit.

“Year after year, spending more than we raise.

“How much more? In 2018/19, we’ve said we’d spend £30 billion a year on capital investment.

“So assuming Labour don’t want to spend less than us on capital investment, that means borrowing at least £30 billion a year and rising.

“A £30 billion budget deficit forever into the future.”

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