IMPROVING employment figures are welcome but have had little impact on tax revenue. Near zero inflation takes some pressure off the cost of living crisis but, combined with falling construction figures, a predicted slowdown in growth and a weak European economy, may be an early warning of a 1930s-style depression.
Osborne’s massive cuts in public spending may have the same disastrous effect on the economy as did similar policies in the 1920s.The cuts at the start of the Tory/Lib Dem coalition helped choke off the recovery they inherited and failed to eliminate the deficit as promised.
Labour will adopt a more balanced and pragmatic economic programme, encouraging productive industry (eg to build much-needed housing) whilst maintaining fiscal responsibility. Labour’s record on national debt (four years of surplus in its last 13 years in office) is superior to that of the Conservatives (two years in the previous 18).
Current levels of inequality with foodbanks at the bottom and million-pound bonuses at the top are little short of a national scandal. We must ensure that economic growth helps the whole of society rather than just those who are best able to help themselves.
Labour will increase the minimum wage and limit zero hours contracts. Not only is this fairer but it will reduce the in-work benefits paid. Giving ordinary working people more spending power will create more jobs and generate income tax revenues.
This will provide a more equitable and effective means of reducing the deficit than more spending cuts. The deficit cannot be paid down by taking more money from those that have next to nothing already.
Labour will increase access to high level apprenticeships in a drive to end the low skill, low productivity economy we have now. Labour will reward hard work, share prosperity and build a better Britain.
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