23 April 2015
Commenting on the publication today (Thursday) by the Office for National Statistics of the latest public sector borrowing figures, which show that the deficit for 2014/15 of £87.3bn is £50bn larger than planned in 2010 because of the failure of the Chancellor’s economic strategy, TUC General Secretary Frances O’Grady said:
“The Chancellor has missed his deficit targets by a country mile. He is borrowing £50bn more this year than his initial target because of the abysmal failure of his economic plan.
“The Chancellor failed to reduce the deficit because he failed to get wages growing. It left the public finances in a mess because income tax revenues and national insurance receipts fell £33bn short of expectations for the last year alone.
“The extreme cuts the Conservatives want after the election will kill-off the recovery, put wages back in decline and leave our schools, hospitals and other services without the vital revenues they need. It’s time for a new economic plan based on investment in the skills, infrastructure and innovation needed to create good jobs with decent wages.”
NOTES TO EDITORS:
- The Office for Budget Responsibility’s forecast for George Osborne’s first Budget in June 2010 was for the deficit to have been reduced to £37 billion in 2014-15.
- Analysis undertaken for the TUC by IPPR found that the shortfall in income tax receipts and national insurance, against OBR wage expectations in 2010, is £33bn. The full report The living standards tax gap just got bigger can be found at https://www.tuc.org.uk/sites/default/files/The%20living%20standards%20tax%20gap%20just%20got%20bigger%20FINAL.pdf
- All TUC press releases can be found at www.tuc.org.uk
- Follow the TUC on Twitter: @tucnews
Issued: 23 April, 2015