This week’s Spring Statement is very concerning. The Government’s approach is economically incoherent and politically dishonest. The Chancellor is attempting to rectify a situation that is entirely of her own making.
This is not a moment of fiscal responsibility, but rather an exercise in damage control. The Chancellor is now scrambling to identify savings because, in the October Budget, the Government chose to increase spending by £70 billion, raise taxes by £40 billion and accumulate £30 billion in debt to finance it. As a result, the public is now bearing the cost of additional spending they neither voted for nor were informed about. Little of this extra expenditure was outlined in Labour’s manifesto.
It is classic Labour: spend other people’s money and then pass the bill onto them. As Margaret Thatcher wisely stated, “The problem with socialism is you eventually run out of other people’s money.” This is precisely the situation Labour finds itself in.
While I welcome the increase in defence spending — a policy long supported by Conservatives — it is clear that the Government is attempting to frame the announcements as difficult yet necessary choices. In reality, these choices are only necessary because of Labour’s mismanagement of the economy. The most telling evidence of this is the significant reduction in the economic growth forecast, which has been halved to just 1%.
I will continue to hold this Government to account.
