Shadow chancellor: spending cuts are ‘ideological’ and a ‘reckless gamble’

-

Alan Johnson described the government’s cuts as “ideological” and dismissed an attempt by the coalition to suggest its measures were less severe than Labour’s might have been.

Two weeks into his new role, the shadow chancellor put in a performance that went some way towards reassuring Labour backbenchers that he will be an effective opponent to George Osborne.

While accepting that the deficit “has to be paid down”, he described the coalition’s four-year spending plan as a “reckless gamble with people’s lives”.

Get our essential weekday HR news and updates.

This field is for validation purposes and should be left unchanged.
Keep up with the latest in HR...
This field is hidden when viewing the form
This field is hidden when viewing the form
Optin_date
This field is hidden when viewing the form

 

Johnson said that, in the fullness of time and despite tables in the comprehensive spending review documents which the government said showed the richest taking the greatest burden, the poorest would bear the brunt.

He also said – repeating an Ed Miliband argument – that “the middle” would be squeezed further and that women would shoulder the burden of three-quarters of the cuts.

Quoted in the Guardian, Mr Johnson continued “Today is the day that abstract figures and spreadsheets turn into people’s futures, people’s jobs, people’s pensions, people’s services,”.

In cutting welfare, Osborne told Johnson his cuts to departmental budgets had actually come in at lower than Labour had planned: an average of 19% – just under the 20% that would have been the case under Labour.

Johnson said the comparison was inaccurate. He said Labour would support two of the Tory benefit changes, so bringing down their spend.

Labour had also made changes to its tax and spend policies since going into opposition, he added, introducing revenue-raising policies including a rise in capital gains tax and a freezing of the tax threshold as well as an increase in the proposed bank levy.

The party said its acceptance of the recent coalition reforms to welfare meant spending cuts would be £20bn lower under Labour and it would cut departmental spending by half the level that the government has.

Johnson said Osborne was simultaneously trying to claim his cuts as equivalent to Labour’s and accuse the opposition of not having a credible deficit reduction plan.

Johnson was theatrical in is response to numerous Tory MPs waving their order papers – apparently with excitement – during Osborne’s announcement: “Members opposite are cheering the deepest cuts in public expenditure that have taken place in living memory. For many of them, this is what they came into politics for.”

Johnson made light of the fact that, during the last comprehensive spending review in 2007, Osborne had supported Labour’s spending plans until after the scale of the credit crunch became apparent “well after the collapse of Lehman Brothers in America set off a disastrous chain reaction around the world”.

The Liberal Democrats, he said, had changed position on whether cuts would be justified this year between the ballot box closing and the door of the ministerial car opening.

Osborne mocked the shadow cabinet for saying they would not put forward their own spending plans. Johnson, he suggested, “doesn’t even have a plan B, and there is complete denial about the fact that the country has the largest budget deficit in the G20.



Latest news

Transgender staff excluded from single-sex toilets under new equality guidance

Transgender people must be excluded from single-sex toilets and changing rooms that correspond with their lived gender under updated...

Simon Coker: Closing the emotional gap – why AI in the workplace is as much a human challenge as a technological one

AI adoption is transforming how work gets done across every sector. But its deeper impact is less visible: it is reshaping how people feel about their work.

Employment tribunal delays stretch towards 2030 as lawyers warn system is nearing collapse

Employment tribunal hearings are being delayed for years as lawyers warn mounting backlogs are undermining workplace justice.

Keeping culture and purpose at the centre of a growing fintech

A fintech people leader explains how culture, wellbeing and purpose are being protected during rapid business growth.
- Advertisement -

Migrant worker with no right to work in UK wins discrimination case against employer

An employment tribunal has ruled that a migrant worker without the legal right to work in Britain can still pursue successful discrimination claims.

Government to replace some GP sick notes with return-to-work plans

Workers in four English regions will be directed towards personalised health and employment support as ministers test alternatives to GP-issued fit notes.

Must read

Nicholas Harding: How Brexit is impacting the fintech talent pool

Nicholas Harding, CEO at peer-to-peer lending platform Lending Works, discusses the challenges and potential solutions to the recruitment issues facing fintech firms in the face of Brexit.

HRreview interviews: Charlotte Hallaways on HR networking

In spite of the ever-growing availability of online networking tools, face-to-face contact remains the preferred way for professionals to network. We've interviewed Charlotte Hallaways to tell us more.
- Advertisement -

You might also likeRELATED
Recommended to you