Labour government would 'rack up borrowing' if voted in claim Tories

Posted on Mar 11 2018 - 6:48am by admin

Offering no new revenue measures beyond previous ideas like raising corporation tax, the Tories claim Labour have spent the same money 12 times over and would have to borrow billions more.

They claim this amounts to an extra £3,907 borrowing for every UK household.

This is on top of promises made at the last general election, which experts said would add at least £252billion to the national debt.

Today’s figures and the cost of Labour’s campaign promises would add £358billion to the national debt, say the Conservatives.

The extra borrowing would also mean an additional £8billion a year in debt interest – enough to pay for 90,000 nurses, 78,000 teachers and 71,000 police officers.

Chief Secretary to the Treasury Liz Truss said: “Just like last time, Labour would rack up borrowing and our debts, leaving us completely exposed to economic shocks.

“Under Labour’s plans, more would be wasted on debt interest and less spent on our public services.”

Since their manifesto on May 16, 2017, Labour have made key spending pledges. In September shadow chancellor John McDonnell vowed to “bring existing PFI contracts in-house”, which the Centre for Policy Studies says will cost £30billion – a figure Labour MP Peter Dowd agreed was “sensible”.

Three days after the general election a Labour paper titled Alternative Models Of Ownership called for the renationalisation of British Telecom. BT’s market capitalisation was £23.7billion last week.

Shadow education secretary Angela Rayner said last month: “We will invest the full £14billion that is needed to bring all school buildings up to standard.”

This after she pledged an extra £1billion technical education funding and £500million for Sure Start centres for early years care – £2.5billion over a five-year parliament.

Jeremy Corbyn’s pledge to end the benefit freeze is estimated to cost £12.9billion over the parliament according to the Treasury, while scrapping the household benefit cap would cost £1.24billion overall.

Labour pledges to build a £10billion nuclear power station in Cumbria, and vows £2.25billion for “clean energy technologies”.

Mr Corbyn said he would guarantee energy workers’ jobs post-re-nationalisation, which would cost £1.56billion according to Oil and Gas UK, the industry trade body based on 28,300 employees earning an average £55,000.

And Mr McDonnell has committed to spending £1.3billion building the Swansea Bay Tidal Lagoon “tomorrow”.

In September shadow work and pensions secretary Debbie Abrahams vowed to allow women to retire two years early, costing £4billion, according to Landman Economics.

Labour has also committed to spending 1.85 per cent of GDP on research and development, amounting to an additional £1.3billion in their first two years in office.

Shadow health secretary Jonathan Ashworth’s pledge to set up a winter fund for A&E would cost an additional £500million by Labour’s own admission.

The pledges add up to £106billion – a figure confirmed by the Institute of Fiscal Studies (IFS) as the amount that would be added to the national debt if Labour were in power.

That does not include Labour’s nationalisation plans which the Centre for Policy Studies has calculated would cost at least £176billion, including the £30billion lowest estimate to bring PFI contracts in-house.

The Social Market Foundation put the cost of water re-nationalisation alone at £90billion.

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