‘The Government clearly do not have a long-term plan for our economy’ says Steve McCabe MP

Steve McCabe has condemned much of the Chancellor’s Autumn Statement for not doing enough for jobs and growth, demonstrating the lack of vision for a long term plan.

 

George Osborne, the Chancellor of the Exchequer, made the Autumn Statement 2012 in the House of Commons today. The Statement provides an update on the Government’s plans for the economy based on the latest forecasts from the Office for Budget Responsibility.

 

The Chancellor informed MPs that the UK economy was now forecast to shrink by a worse than expected 0.1% this year. The new Office for Budget Responsibility growth forecast compares with its previous prediction of 0.8% growth. The Government will also miss its target on reducing the national debt, meaning austerity measures will be extended to 2018.

 

The Chancellor will scrap a planned 3p rise in fuel duty and raise the tax-free personal allowance to £9,440. Mr Osborne will also save £3.7 billion on the welfare bill, as most benefit payments will rise by just 1%, less than inflation. This will effectively mean a cut in child benefit for millions of families.

 

While Steve McCabe welcomed the decision to scrap the fuel duty rise, he does not believe the Statement did enough for ordinary hard-working families.

 

Commenting further on the Autumn Statement, Steve said:

“Pursuing austerity cuts so dogmatically, as this Conservative-led Government have, has had a detrimental effect on our economy and choked off growth.

 

“Prices are rising faster than wages, our economy has flatlined for two years and long term unemployment is soaring. The benefit bill is up as a result and tax revenues are down so borrowing is rising not falling. The Government is failing on the one test they set themselves.

 

“I am glad the Chancellor has listened to reason and scrapped the fuel duty rise. However, the Statement offers little comfort for people still struggling to make ends meet.”

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