Labour MP calls for a Real Alternative as UK plunges further into the red.
Labour MP Grahame Morris has called on the Government to end austerity following shock figures showing increased borrowing for July.
Government borrowing was £600m in July, despite forecasts predicting a surplus of £2.5bn. Government debt now stands above £1 trillion, compared to £940bn last year, which represents 65.7% of the UK’s GDP, up from 61.8% last year. This is only the third time in the last 15 years that the Government has not recorded a surplus in July.
The Coalition Government promised to eliminate the budget deficit by 2015 through spending cuts and tax rises but a weak economy has forced it to extend the cuts by another two years with the Prime Minister warning that austerity measures could last until 2020.
Easington MP Grahame Morris, who served on the Finance Bill Committee, has called for the Government to change course
“Each month Government Ministers talk of disappointing figures, whether these are unemployment, economic growth, or borrowing, however, their only solution to the economic crisis is more cuts, more austerity.
Austerity isn’t working and has choked off the recovery leading to a Downing Street made double dip recession, which is making the deficit worse not better.
This year saw the Olympics give a temporary boost to employment and tax receipts. July is traditionally a good month for tax receipts, and last year saw a surplus of £2.8bn, but in the last twelve months the Government have continued to depress demand in the economy.
These figures matter because when the Government embarks on their next round of ill conceived spending cuts, it is communities and public services in the North East that are hit hardest and hit first.
The Government economic policy has failed and they need to change course before they cause long-term damage to our economy.
As we go forward we must be wary of the Government using these latest figures as an excuse to force through more deregulation, scrapping workplace rights, and job cuts which will further dampen demand, hurt business and turn a Government made recession into a depression.”